PIPPIN has surged in recent trading sessions, causing the market to regain interest in this token. The latest price increase has brought the token price close to its historical peak, raising hopes for a new record in the near future.
However, as the uptrend continues, concerns about profit-taking and short-term selling pressure are also starting to rise.
The PIPPIN shark can change the outcome
On-chain data shows increasing caution from retail investors. The Chaikin Money Flow indicator has fallen below 0 and entered negative territory. This indicates that outflows of PIPPIN are starting to exceed inflows, reflecting the early stage of a distribution process rather than accumulation.
The increased amount of tokens withdrawn is believed to be due to many investors taking profits after the recent price surge. As prices approach record highs, many traders often reduce their token holdings to manage risk. This action may cause the uptrend to stagnate, even during periods when the market is still active.
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Although retail investors are being cautious, the trading activity of the sharks still shows a positive trend. Specifically, wallets holding more than 1 million USD in PIPPIN have increased their token holdings by 3.57% in the past 24 hours. Currently, the total amount of PIPPIN tokens controlled by sharks is around 425.34 million tokens.
These large investors often have the ability to significantly influence short-term price volatility due to substantial cash flow. The fact that the sharks continue to buy indicates they still believe in PIPPIN's price appreciation potential. This action may help balance the selling pressure from retail investors, supporting price stability during volatile periods.
PIPPIN is currently trading around 0.497 USD at the time of writing, up 38% compared to 24 hours ago. This token is just under 7% away from reaching its all-time high price of 0.530 USD. The upward momentum is still quite strong, thanks to consistent buying from large investors.
If PIPPIN successfully surpasses the level of 0.530 USD, many investors are likely to continue pouring money in to 'surf'. If it breaks the peak successfully, the price of PIPPIN could head towards the 0.600 USD range. When trading volume remains high above this resistance level, the price may continue to explore new highs.
Risks remain if selling pressure continues to increase rapidly. If PIPPIN cannot maintain the current price, it may drop below the important support level of 0.434 USD. If it adjusts deeper down to the 0.366 USD range, the bullish trend will no longer be valid, and the market is likely to return to a consolidation phase instead of expanding the current uptrend.
