PIPPIN, one of the recently returned AI agent tokens, has achieved new all-time highs. This rally is being met with skepticism, as evidenced by increased attempts to short the asset.
PIPPIN has been among the top gainers for several days, following a broader recovery in the cryptocurrency market. The AI agent token surged above $0.32, extending its previous gains and surpassing its prior peak reached during the initial wave of enthusiasm for AI agent tokens.
Previously, PIPPIN had peaked at $0.24 before dropping to lows of $0.01, where it remained for most of the year. PIPPIN's recent performance indicates that the market possesses sufficient liquidity to propel certain assets, even without a full-blown altcoin season.
PIPPIN Rises on Decentralized Trading Volume
The token's liquidity is primarily sourced from Raydium and Gate, which facilitates easier price pumps in a limited market. Raydium's share of trading volumes increased to 31%, with a slight price premium reaching up to $0.35. As of December 10, PIPPIN was the most actively traded token on Raydium, outperforming FARTCOIN and JellyJelly.
On Raydium, PIPPIN has 44 liquidity providers, and its main pool holds $12.5 million. Significant whale activity is evident, with top traders actively engaging in both buying and selling PIPPIN. The leading whale involved has realized gains of $7.6 million from the token.
Whale activity from top traders is increasing at current price levels. The token has amassed over 31,000 holders since its initial launch, suggesting potential selling pressure from retail investors as well.
PIPPIN Open Interest Reaches All-Time High
The recent surge in PIPPIN's price has also activated derivative markets, with traders placing bets on both continued expansion and an impending crash.
PIPPIN's open interest climbed to $135 million, with the most substantial spike in volumes observed on Binance Futures. Futures trading on OKX and Zoomex also contributed to this overall trend.
Currently, over 72% of all position holders are shorting PIPPIN, a strategy that carries the risk of further price expansion. Analysis of the liquidation heatmap suggests that PIPPIN has already targeted available short positions, with minimal liquidity remaining until $0.39.
Short sellers are anticipating a significant price drop and are attempting to curtail the rally. Funding rates for PIPPIN have turned negative on Binance and have entered deeply negative territory over the past week.
Concerns exist that the PIPPIN project lacks substantial innovation and relies heavily on its meme status. While some AI models maintain residual communities, PIPPIN's recent price rally has seen its mindshare increase by over 1,600% in just a few days, coinciding with an 835% price surge.
PIPPIN's ascent followed a resurgence of older meme and AI tokens, including POPCAT, JellyJelly, and Fartcoin. While some of these pumps were brief, certain assets have seen a return of liquidity and multiple rallies in recent months. Aggressive futures trading remains a high-risk strategy due to potential liquidations from unexpected price movements, fueled by concerns of market manipulation.
Speculation surrounding a potential Binance listing for PIPPIN has also emerged. Simultaneously, scam bots have begun disseminating risky, false airdrop claim pages.