PIPPIN Stands Above Critical Support Despite Recent Weakness—Short Squeeze Signals Still Active

The $0.36 Level Holds Key Support as Bears Face Rising Closure Pressure

PIPPIN continues to demonstrate noteworthy resilience on daily and weekly timeframes, even as it trades significantly below its all-time high near $0.78. While the recent pullback has been meaningful, the underlying price structure suggests accumulation zones remain respected. Current trading at $0.36, the token’s behavior reveals an interesting dynamic: negative funding rates persist, shorts continue bleeding through liquidations, and the broader trend framework hasn’t fundamentally deteriorated.

What makes this setup particularly compelling isn’t just the price level—it’s the fact that derivative traders remain caught offside. Data from liquidation tracking platforms shows asymmetric pressure, with the vast majority of liquidations coming from leveraged short positions rather than long holders. This friction often precedes resumed momentum once support holds firm.

The Structural Foundation—Still Intact Below the Surface

The price action over recent weeks tells a story of extended accumulation followed by a powerful breakout that carried PIPPIN through multiple resistance zones in quick succession. While the recent correction from $0.78 has been sharp, pulling back roughly 20% over the past week, the token has yet to close decisively below key support bands established during the earlier consolidation phase.

Fibonacci extension levels continue to mark important reference points on the chart. The 100% extension zone, which previously acted as a natural pause point during the rally, has now transformed into a potential rebound floor. Traders watching this level closely understand that as long as price respects this zone, the trajectory of least resistance remains higher despite current weakness.

Technical indicators present a mixed but intriguing picture. RSI readings, which had climbed into the low 90s during the height of the rally, have cooled meaningfully and now sit at more neutral levels. This isn’t necessarily negative—it represents a normalization after an extended run rather than a reversal signal. Markets require periodic consolidation and indicator relief to sustain directional moves over time.

Derivative Pressure: The Hidden Fuel for Potential Reversal

One of the most significant advantages for bulls lies in the positioning of leveraged traders. Despite prices trading well below recent highs, funding rates have remained negative across major exchanges. This seemingly contradictory setup—bearish sentiment combined with upward price pressure—typically resolves through forced short closures.

Over the past 24 hours, liquidation cascades reveal where the pain lies. Short positions have been liquidated at roughly 8x the rate of long liquidations, a stark imbalance that suggests bearish traders remain heavily underwater. When this happens across a sustained price support level, covering shorts often accelerates upward movement rather than dampening it.

The CoinGlass liquidation tracker documented substantial near-term closure activity, with the bulk of liquidation value concentrated in the short side of the market. This data point matters because it indicates that while bulls aren’t heavily leveraged, bears are—and that’s a setup that favors renewed momentum if support holds.

Risk Factors: When The RSI Cooldown Turns Into Capitulation

Current challenges shouldn’t be minimized. The magnitude of the decline from $0.78 to $0.36 represents a material correction that has likely shaken confidence among recent buyers. RSI normalization, while technically healthy, can sometimes precede deeper pullbacks if broader market sentiment deteriorates.

The key vulnerability remains support penetration. If PIPPIN closes decisively below its established support zone on multiple timeframes, the technical narrative could reverse quickly. Volume behavior during any potential further decline will be critical—strong volume breaking support would signal genuine selling pressure, while weak volume on declines often indicates consolidation rather than distribution.

Additionally, any broader crypto market downturn would pressure PIPPIN regardless of its individual technical strength. Correlation risks remain present, particularly for mid-cap tokens during periods of sector-wide volatility.

Forward Path: Patience For Structure Confirmation

The most likely intermediate scenario involves sideways consolidation near current levels, allowing technical indicators to normalize and funding rates to stabilize. If that unfolds without additional support breaks, the pathway toward testing the 127.2% and 141.4% Fibonacci extensions remains valid—though reaching those levels would represent substantial recovery from current prices.

For traders monitoring this setup, the critical level to watch remains the established support band from the earlier accumulation phase. As long as PIPPIN maintains footing above this zone, the structural argument for higher prices later in the cycle holds weight. Break below, and the narrative shifts materially.

The derivative market’s continued short-heavy bias serves as a counter-indicator—bearish positioning at depressed prices has historically been a tell that capitulation may be near. Whether that triggers the next leg higher depends on whether support proves durable in the coming days.