Pippin - When the momentum rises sharply, can the upward trend be sustained?

Pippin (PIPPIN) shows an impressive short-term increase, with the current price at $0.34 and 24-hour trading volume reaching $4.70 million. This surge is not just a price movement but also reflects strong participation from investors. However, the mechanism behind this price rise raises certain concerns about sustainability.

Excessive Leverage: The Hidden Risk of Open Interest Explosion

The most notable figure in the current picture is the increase in Open Interest (OI), which has surged approximately 90.45% to $218.96 million. This increase far exceeds the actual price gains, indicating traders are building long positions aggressively. This reflects high confidence but also increases market leverage.

As OI expands rapidly, any momentum struggles could trigger a chain of forced position closures. Traders should not ignore this warning signal — the market is under high stress.

Technical Momentum: Positive Signal but Not a Guarantee

On the 4-hour chart, Pippin maintains an uptrend structure from the support zone of $0.32–$0.33, with each correction creating higher lows. Short-term support is currently at $0.45, while the nearest resistance is at $0.53. The MACD indicator shows a clear improvement in momentum, with the histogram turning positive and signal lines trending upward.

These factors suggest potential for continued growth, but they are only supporting conditions, not guarantees. The sustainability of the trend depends on whether buying demand can be maintained.

Short Liquidations: When Downward Pressure Is Absorbed

Liquidation data shows a clear imbalance: recent rallies have wiped out approximately $672.87K of short positions, compared to only $64.2K of long positions. This discrepancy is significant — bearish traders are absorbing most of the pressure, providing additional fuel for upward moves.

However, this advantage is temporary. Once short positions are fully closed, the natural pressure to support prices will diminish. This explains why rallies driven by short liquidations often lack long-term sustainability.

Funding Rate: Balanced Signal but Not Optimistic

OI-Weighted Funding is currently slightly negative, around -0.0705%. This indicates that although Open Interest is high, traders are not paying excessive premiums to hold long positions. In other words, they are not overly optimistic.

However, this situation can change quickly. A sharp move into positive funding rate territory would signal market overheating — a sign that a reversal may be imminent. Currently, this balance allows prices to extend without immediate leverage pressure.

Resilience: Conclusion — Demand, Not Excitement

Pippin is at a critical stage. The rally is supported by strong trading volume, improving technical momentum, and short liquidation strength. All these factors are positive.

But the key question is: can the buying momentum be maintained disciplined? If yes, the uptrend still has a chance. If not, the current leverage positions could quickly amplify volatility in the opposite direction.

Investors should remember that in such situations, liquidity risk is real. Caution and position management are essential.