Pull a classic rug or take the chance to buy?

One analyst claimed that it was a “scam coin” created by “scumbags”.

The meme coin “PIPPIN” had become a rock star in the virtual currency world not so long ago due to its astonishing price rise, but it has plummeted by about 50% in just the past day.

The big question now is whether a rebound is on the horizon, or whether this is a textbook stretch that suggests things could get even worse from here.

Has the identity of the fraud been revealed?

While the entire cryptocurrency market struggled throughout February, little-known meme coin PIPPIN defied the negative conditions and recorded a triple-digit price explosion. At one point, the valuation soared to $0.76, but by the end of last month it had risen to an all-time high of almost $0.90.

PIPPIN’s market capitalization briefly reached nearly $900 million, placing it in the elite club of the 100 largest cryptocurrencies, but its success was short-lived. The beginning of March saw a significant correction, which deepened after falling 52% in the past 24 hours. In just one day, nearly $200 million of the asset’s market capitalization has evaporated, and it now ranks as the 188th largest digital asset.

The most obvious reason for the crash appears to be a sell-off initiated by certain investors. Some X users The same wallet that accumulated PIPPIN last week was reported I recently sold off all my stock holdings.

Memecoins have been the subject of criticism from many market observers, even during the bull market. Last month, X user Dippy.eth described it as “the biggest scam of the past year,” while others believe the entire project is a “cabal play,” with a coordinated group of insiders believed to be manipulating prices through their actions. Most recently, crypto analysts joined the critics club and classified PIPPIN as a “scam coin” that “attacks people”.

How about a revival?

Despite the overwhelming opinion among industry insiders that PIPPIN is a red flag for traders and investors, some remain bullish on the asset. For example, X user Nehal expects volatility to increase in the future, eventually increasing the price to the new ATH of $1.

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The relative strength index (RSI) of this asset supports the rebound theory. This indicator measures the speed and magnitude of recent price movements and helps traders identify potential reversal points. It ranges from 0 to 100, with ratios below 30 considered bullish territory that could precede a recovery. Conversely, readings above 70 indicate that a pullback may be approaching. Currently, the RSI for PIPPIN is around 24.