Pippin (PIPPIN) demonstrates structural strength despite a 56% retracement from all-time highs

Pippin maintains its bullish technical setup even after a significant correction from its recent highs. The derivatives market continues to show downward pressure with negative funding rates and a considerable volume of short liquidations. Although momentum indicators show signs of overheating, the underlying market structure still holds its key support points.

Pippin has demonstrated a remarkable resistance capacity despite experiencing a 56% drop from its all-time high near $0.78. The token is currently trading around $0.34, after showing volatile movements in recent sessions. Despite the recent bearish pressure with a 22.99% loss over the last 7 days, the overall technical structure on higher timeframes still retains its original breakout pattern. This suggests that bullish conviction traders have not abandoned their long-term positions.

Technical analysis: The breakout structure remains a key reference

Charts on higher timeframes reveal that Pippin spent months building a consolidation base before achieving its decisive breakout. That breakout was vigorous enough to pierce through several Fibonacci retracement levels without the price stopping significantly. The consolidation zone was originally near the 100% extension around the $0.53 level.

Most importantly, while the price has retraced from its highs, the fundamental breakout structure remains intact. Fibonacci projections point toward 127.2% and 141.4% extensions as the next important technical levels, although reaching them would require the market to absorb current pressure without ceding the support levels established during the bullish phase.

The RSI indicator had reached readings close to 95 during the previous rally, indicating extreme overbought conditions. These readings typically generate caution among traders, not necessarily because the trend is compromised, but because such pronounced movements rarely sustain without a technical correction or retracement. However, a cooling of the indicator does not necessarily imply a danger to the trend. Mature markets often consolidate or slightly correct while oscillators rebalance.

Derivatives market dynamics: Massive short liquidations drive the movement

Futures market analysis provides additional perspectives on current positioning. Funding rates have remained in negative territory, indicating that traders with short positions continue paying discounts to those with long positions. This dynamic reflects that bearish conviction remains relatively strong compared to what the price suggests, creating a potentially explosive environment.

Liquidation data over the past 24 hours highlight this underlying tension. Short positions liquidated reached $9.94M, contrasting sharply with $1.21M in long position liquidations. This nearly 8-to-1 imbalance shows that traders have been caught in the wrong direction, and when momentum turns against overloaded shorts, forced buying tends to accelerate movements that would otherwise develop more gradually. The total liquidation volume in 24 hours was $11.15M.

This scenario creates a market mechanic where each upward move generates additional pressure on overloaded shorts, potentially amplifying any recovery. The sustained negativity of funding rates suggests that while the current price is under pressure, the positioning structure still favors future bullish moves.

Consolidation outlook: What to expect next?

In summary, Pippin maintains solid technical fundamentals on higher timeframes, derivatives positioning continues to work against the current price, and the history of short liquidations has been fueling upward pressure rather than hindering it. If the market manages to consolidate without losing the technical supports established during the initial breakout, the overall structure would maintain its bullish orientation, likely after a stabilization period that allows technical indicators to rebalance.