This ‘PIPPIN’g Hot Rally Could Cool Down: Here’s Why a Reheat Isn’t Off the Table
PIPPIN's strong rally may pause due to an overbought RSI, but bullish CMF divergence suggests buyer strength supports a quick recovery.Summary
The PIPPIN token has experienced a significant rally, jumping over 57% in 24 hours. Analysis of the two-day chart indicates a potential short-term cool-down, primarily because the Relative Strength Index (RSI) is deep in overbought territory (above 90+), suggesting a pullback risk. However, unlike a previous instance, the price and momentum are in agreement without bearish divergence, pointing only to a cool-down, not a crash.
Contrarily, the Chaikin Money Flow (CMF) shows a bullish divergence, as it made a higher high while the price made a lower high, indicating strong activity from large buyers. Furthermore, CMF has remained positive since September, signaling steady spot demand. This suggests that while a dip might occur, the underlying structure remains intact, and the trend is likely to recover quickly.
Key price levels show resistance near $0.22, with potential targets at $0.30 and the all-time high of $0.33. The rally structure remains healthy as long as the price stays above the $0.13 support level; a drop below $0.09 would invalidate the current setup.
(Source：BeInCrypto)