Pippin Price Forecast: PIPPIN rallies over 14%, aiming for record highs
- Pippin rebounds above $0.71, defying the broader crypto market's doldrums.
- Retail interest in the AI crypto token returns with futures Open Interest expanding to $245 million on Monday.
- Robust technical indicators, including the MACD and the RSI, support Pippin’s bullish outlook.
Pippin (PIPPIN) is rising above $0.70, aiming for the record high of $0.77 at the time of writing on Monday. The Artificial Intelligence (AI) crypto token appears to defy headwinds in the broader cryptocurrency market, rallying over 14% intraday, 176% in a fortnight and approximately 91% in 30 days, according to CoinGecko.
Tokens in the AI crypto segment mirror the overall bearish trend of the larger crypto market. Bittensor (TAO) hovers at $176, down 2.5% over the past 24 hours, while Near Protocol (NEAR) has lost 1.5% in the same period. The sector's total market capitalisation averages $13 billion, down 2% over 24 hours.
Retail demand soars as Pippin explodes
Pippin’s impressive performance is supported by a robust derivatives market, rejecting a significant increase in futures Open Interest (OI) to $245 million on Monday, from $161 million the previous day.
The surge in futures OI suggests that Pippin has the potential to sustain its rally, supported by growing retail confidence, as traders lean into risk.
Technical outlook: Pippin rally in focus
Pippin is holding above $0.70, sitting well above the 50-day Exponential Moving Average (EMA) at $0.41, the 100-day EMA at $0.33 and the 200-day EMA at $0.23. All three moving averages are edging higher, upholding Pippin’s steady price increase.
The Moving Average Convergence Divergence (MACD) indicator remains above its signal line on the daily chart, suggesting that bullish momentum is intact. Green histogram bars expand, calling on traders to increase their exposure.
Meanwhile, the Relative Strength Index (RS) at 68 is near overbought territory, which, on one hand, suggests that bullish momentum is at peak levels, but on the other, it cautions that traders should temper their expectations as a correction could be in the offing. A reversal in the RSI toward neutral would trigger profit-taking and contribute to selling pressure. Below the immediate support at $0.70, Pippin may correct to test the January 28 high of $0.55.
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
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