Pipe Network(PIPE) is online with a big dump of 25%. Did the Whale take profits or is market panic spreading?

When a market with a high greed index encounters early investors collectively taking profits, even projects with good technical prospects cannot escape the fate of a short-term big dump.

On the day Pipe Network (PIPE) was listed on top exchanges like Gate, the price plummeted from $0.3073 to $0.2661, with a fall of up to 25%.

According to CoinMarketCap data, its market capitalization is approximately $26.94 million, while trading volume has astonishingly increased by 68,505% to $21.42 million. This sudden big dump has transformed investors' long-term profit visions into high-risk concerns.

01 Market Performance: Double Failure in Technical Aspects and Timing

The price performance of Pipe Network after its listing highlights the typical "buy the expectation, sell the fact" mentality in the cryptocurrency market.

The listing of the token and the launch of the mainnet were supposed to create a synergistic effect, but within a few hours, it dramatically fell 31% from nearly $0.30 to $0.25.

This kind of high opening and low closing trend is not unrelated to the overall downward movement of the cryptocurrency market that day. On the same day, Bitcoin fell by 2%, Ethereum fell by 6%, and the overall market capitalization shrank.

Market timing selection is heavily questioned. Blockchain researchers point out: "Launching tokens before important announcements from the Federal Reserve and ETF updates undoubtedly amplifies market sensitivity, and the choice of listing timing for the pipeline network is open to debate."

New asset listings during market downturns can easily become targets for early investors to take profits.

02 On-chain Data: Whale Operations and Capital Flow

A PEPE whale once transferred 1 trillion PEPE into a CEX, resulting in a loss of asset value amounting to 3.44 million dollars.

Such large-scale transfers of tokens to exchanges usually indicate increased selling pressure, creating downward pressure on prices.

The importance of on-chain data analysis is highlighted at this moment. Monitoring the wallet movements of large holders, the inflow and outflow ratios of exchanges, and the distribution of holders can provide early signals for market trends.

03 Price Drivers: Three Factors Leading to a Big Dump

profit-taking mentality

Early investors taking profits is the main driver of the decline in Pipe Network prices.

Those early participants who hold tokens at a lower cost naturally have a strong motivation to realize profits once they encounter the surge in liquidity brought by the exchange listing.

This "listing and dumping" model is common in the crypto market, especially when testnet participants receive airdrop rewards.

reward distribution issue

The delayed distribution of airdrop rewards has further shaken market confidence.

Some early testnet users complained that their PIPE network airdrop rewards did not arrive on time. This technical issue not only sparked dissatisfaction within the community but also deterred potential buyers.

In the crypto space, trust is a scarce commodity. Once a project team has flaws at the execution level, the market will quickly vote with a sell-off.

market sentiment shift

Huge selling pressure was the last straw that overwhelmed Pipe Network's price.

The trading volume of this asset exceeded $20 million in 24 hours, but this is not a buy - most people sold their tokens immediately after listing.

This herd mentality sharply contrasts with the "greed" signal currently displayed by the crypto fear and greed index. Today, the index is as high as 71, a significant increase from last week's neutral value of 50, indicating that the overall market sentiment remains optimistic.

04 Investment Risks: Concerns in a Greedy Environment

The divergence between market sentiment and individual assets is the core risk facing the Pipe Network currently.

When the Crypto Fear and Greed Index rises to 71 in the "Greed" zone, it indicates that investors may be overly optimistic, which usually signals that a market correction might be imminent.

Alternative. ME warns that when investors become too greedy, the market may be on the verge of a correction, and extreme fear may instead present a buying opportunity.

The unique risks of Pipe Network are also reflected in its technical execution and community management.

If the reward distribution problem after the launch of the mainnet is not resolved in time, it may further erode the trust of the community and form a vicious circle of "technical problems-price decline-intensified sell-off".

For projects listed during times of high greed index, market patience is usually quite limited.

05 Technical Analysis: Key Levels and Future Trends

The technical indicators of the Pipe Network provide some neutral to recovery signals.

According to TradingView chart analysis, the current RSI is 62.5, indicating that the token is recovering but not overbought; the MACD is positive, meaning that momentum is slowly rising.

The price has found support in the range of $0.278-$0.280, and buyers have shown a willingness to defend this level. This level will become a key reference point for future trends.

Resistance level: The $0.300 level has recently successfully rejected the price movement upwards. If it can break through this level with trading volume, it may quickly trigger a rebound momentum.

The technical structure shows that the Pipe Network is in a phase of trying to stabilize, with the big dump having stopped, but recovery to rise requires more buying support.

06 Strategy Suggestions: Risk Management and Opportunity Seizing

Short-term strategy

Short-term (1-7 days) price trend may fluctuate between $0.278 and $0.30.

Traders may consider cautiously building positions near the lower edge of this range and setting stop-losses below $0.275. If the price breaks through the $0.30 resistance level, it may quickly move towards the $0.33-$0.35 area.

Short-term traders should closely monitor the overall market sentiment changes, especially the price trends of Bitcoin and Ethereum, as Pipe Network shows a high correlation with mainstream currencies.

long-term layout

Medium-term (2-8 weeks) performance will depend on liquidity maintenance and potential additional exchange listings.

If these conditions are met, the token may aim for the 0.40-0.50 USD range. Without these catalysts, a fall into consolidation may be a high probability event.

Long-term (over 3 months) prospects depend more on the substantial progress of the project's fundamentals.

If the actual application and platform growth of Pipe Network continue, the price prediction for 2025 could reach $1. The key to achieving this goal lies in whether the project can fulfill its technical commitments and user growth.

07 Conclusion: Investment Wisdom Beyond Price Fluctuations

The market performance of Pipe Network vividly demonstrates the fierce competition between technical analysis and market psychology in the cryptocurrency market.

Even if the project has a solid foundation – delivering over 60PB of data during the testnet period, approximately 290,000 PoP nodes globally, and achieving 70% lower latency than traditional data transmission companies – short-term prices may still be dominated by market sentiment and the behavior of early investors.

True cryptocurrency investors do not blindly panic due to short-term fluctuations, but instead assess the long-term value of the project and the risk-reward ratio.

As a crypto analyst said, despite facing a big dump, "the asset's technology, growing ecosystem, and improving chart structure indicate that the story is not over."

Seeking a balance between greed and fear is the eternal theme of cryptocurrency investment.