The memecoin sector, especially those blended with AI narratives, has been doing well of late. In general, it’s altcoins with an AI narrative that have been performing over the past three months.
PIPPIN crypto has been leading the top 100 coins by market cap in terms of gains. Despite a rise of 2,648% during this period, the memecoin has lost about 14% over the past 24 hours.
The market cap of the memecoin peaked above $750 million but has since dropped 16% from the all-time high. Historically, the markets tend to correct after hitting new peaks.
Kite AI [KITE] was another AI coin that was performing well, returning more than 140%. Bitcoin [BTC], on the other hand, was facing a loss of 27%.
Considering this performance, the double-digit drawdown seemed like a correction. Or it could be the start of another crash, just like Fartcoin [FARTCOIN] and other AI coins.
How long will PIPPIN’s correction take?
Looking at the charts, PIPPIN was in a steep fall from a peak of $0.77. The price was nearing a former resistance zone at $0.55, which traders were anticipating to become a support.
The fall came just after a 34% wick fill of last year’s price spike on the 24th of December. Holding above this zone would suggest a rebound past the high at $0.77.
At press time, the MA Cross has already signaled a trend shift on the 4-hour chart. The Chaikin Money Flow (CMF) was also declining, just a point shy of the negative territory.
This signaled a potential end to the ongoing bullish trend. In fact, PIPPIN was entering a correction phase, but the price was still at a premium zone. The 50% Fibonacci Retracement was at $0.46, just below $0.55.
This heightened the chances of breaking below the $0.55 zone if bulls continued to fade buying. In that case, the next area to expect a rebound would be $0.269.
And the worst-case scenario, a fall below $0.154, would invalidate the bullish setup.
While the memecoin has stayed in a bullish structure since late November 2025, it’s worth noting what fueled the day’s losses.
Why is the memeoin down?
Data from Coinalyze showed that Open Interest (OI) dropped from $175 million to $138 million. This was reflected in the Long/Short ratio that fell from 1.50 to 0.285.
This indicated that the market was inclined toward selling, potentially profit-taking after the new peak.
The Aggregated Funding Rate turned negative, confirming the profit-taking, as it meant that shorts were paying longs.
In summary, PIPPIN was in a bullish structure but is currently undergoing a correction phase. How long the correction took depended on how prices reacted around the key levels aforementioned.
Final Summary
- PIPPIN drops 10% due to a decline in OI and Long/Short ratio and negative funding rates.
- PIPPIN price was in a correction phase, with traders watching out for a reaction at the $0.55 zone.
