Over the past day, Pippin (PIPPIN) experienced a capital flight, leading to an 11% drop in price.
Although this seems gloomy, the outlook is not entirely bearish and the asset still holds rebound potential.
Capital flight is the fault
Capital outflows from the PIPPIN derivative market over the past day were one of the main drivers of the price decline.
Net inflows, which track capital inflows and outflows from the derivatives segment, were negative $2.02 million, according to CoinGlass.
The outflows indicate that more traders are voluntarily closing their positions and avoiding leveraged markets.
Source: CoinGlass
This contrasts with 15 days ago, when PIPPIN saw positive net inflows of $148 million on its futures market, a consistent trend in previous periods.
Along with the decrease in capital, perpetual volume has been bearish, with more selling than buying seen in recent days. The buy/sell taker ratio fell to 0.91, reinforcing this downward price trend.
Is there still hope?
There are signs of a potential recovery, as funding rates and spot trading activity suggest bullish support. The funding rate measures whether capital inflows into an asset’s perpetual market favor rallies or declines.
Currently, the funding rate is slightly bullish at 0.0006%, indicating that long contracts are slightly outpacing short positions.
Source: CoinGlass
Spot market net flows, which track buying and selling activity, show more buyers than sellers over the past 24 hours.
Around $74,000 worth of PIPPIN was purchased in the last 24 hours, following $263,000 the previous week, supporting bullish investor sentiment.
If spot investors continue to add to their positions, the asset is likely to gain momentum. Additional speculative trades aligned with bullish positions could further strengthen this rally potential.
Dynamics remain weak
Overall market dynamics remain subdued, and sentiment has yet to improve.
The Moving Average Convergence Divergence (MACD), which indicates market momentum, is showing bearish conditions. However, the histogram bars are changing from deep red to lighter red, suggesting that momentum may be fading.
This does not yet signal a return of the bulls. A clear reversal would require the blue MACD line and orange signal line to enter positive territory. Until then, PIPPIN will likely continue to fluctuate rather than trend upward.
Source: TradingView
Likewise, the Average Directional Index (ADX), which measures trend strength, has been trending downward.
When price falls while the ADX is also falling, it suggests that bearish momentum is currently weak and may not persist.
Final summary
- PIPPIN has experienced capital outflows which have driven down its price.
- Some traders see this as an opportunity to accumulate the asset by placing long positions.
