By Victor Swaezy 
Solana-based memecoin PIPPIN is back in the spotlight after staging one of its strongest recoveries in weeks. The token recorded a sharp breakout from a prolonged downtrend, delivering a sudden surge that caught much of the market off guard.
At the time of writing, PIPPIN is trading at $0.484, marking a gain of almost 60% over the past 24 hours. The rapid move has sparked speculation among traders that a short squeeze played a central role in driving the rally.
Technical Breakout Signals Shift in Momentum
On the 4-hour chart, PIPPIN confirmed a bullish breakout after reclaiming the upper boundary of a symmetrical triangle wedge that had constrained price action since early January. The move was validated by a bounce off the rising lower trendline, suggesting growing buyer conviction.
Momentum indicators reinforce the bullish narrative. The Money Flow Index has turned higher, pointing to strong capital inflows, while the Awesome Oscillator has flipped into positive territory with expanding green bars. Together, these signals indicate accelerating bullish momentum rather than a brief relief bounce.
From a technical perspective, the former wedge resistance near $0.38 has now turned into a key support zone. Holding above this level keeps upside continuation in play, with near-term targets around $0.55 and a potential retest of prior highs near $0.65.
Short Squeeze Adds Fuel to the Rally
Beyond technical factors, derivatives market dynamics appear to have amplified PIPPIN’s move. The rally gained speed as a short squeeze developed under persistently negative funding rates. As bearish positions lost their incentive to remain open, the risk–reward balance shifted sharply against short sellers.
As price continued to rise, short positions were forced to close, adding further buying pressure and accelerating the upside move. What began as a breakout quickly turned into a cascade of forced covers, trapping bearish traders and forcing many to chase the rally instead of fading it.
Open Interest Surge Signals Rising Participation
Supporting the bullish case, Open Interest jumped by approximately 62%, signaling a sharp increase in market participation. Importantly, this rise suggests that new positions are entering the market rather than the move being driven solely by short covering.
When price advances alongside increasing Open Interest, it often indicates that fresh capital is supporting the trend, improving the odds of continuation. However, the growing use of leverage also introduces higher volatility risk, particularly if momentum begins to stall.
Outlook: Bulls in Control, Volatility Rising
For now, market flow continues to favor the bulls, with PIPPIN holding above its breakout level and momentum indicators remaining constructive. A sustained hold above $0.38 keeps the bullish structure intact, while failure to defend that level could signal a false breakout and open the door for a pullback toward the $0.32 demand zone.
As conditions stand, PIPPIN appears poised to remain above former resistance, but traders are increasingly aware that leverage-heavy setups can magnify both gains and reversals. The next sessions will be critical in determining whether the memecoin’s comeback evolves into a broader trend or fades into heightened volatility.