The price of Pi Coin continues to face significant pressure, and the selling has not stopped. Meanwhile, this token has decreased by 5.6% in the past 24 hours and has dropped by 11.5% over the last seven days. Since the end of November, Pi Coin has fallen by about 32%, placing this cryptocurrency among the weakest during this market correction.
As the price continues to decline, a crucial question arises: Are retail traders of Pi Coin trying to buy when the price is dropping? Even though it appears that prices are continuously falling like a falling knife.
The chart confirms a downtrend; bears dominate the market.
A falling knife refers to a market condition where prices continue to make new lows without a clear price base. The price correction of Pi Coin, which has dropped 32% in two weeks, clearly matches this definition on the daily chart.
The price of Pi Coin is currently trading below all significant exponential moving averages (EMA). These EMAs indicate trend direction, showing the momentum of price movement. When the price remains below these averages, the trend continues to be downward, meaning a falling knife pattern may occur. On the Pi Coin chart, every attempt to bounce back has failed below this level. Therefore, PI should currently stand above at least one EMA line (starting with the 20-day EMA) to reverse the direction back upward.
The Bull Bear Power (BBP) indicator confirms this view. BBP measures whether the buying or selling side controls momentum. Since December 1st, BBP has been deeply in negative territory and continues to expand downward, indicating that bears completely control the game, while buyers have not managed to push prices back sustainably.
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As long as Pi Coin trades below its own EMA and BBP remains negative, the overall structure continues to be a falling knife, not a buying opportunity during price drops.
Short-term buyers are entering the market, but large capital is still selling.
However, when expanding the view to a 12-hour chart, a different dynamic is observed. While the price of PI continues to make new lows between December 11 and 15, the Money Flow Index (MFI) has made higher lows.
MFI is a measure of buying and selling pressure using both price and trading volume. When MFI rises while prices fall, it often indicates buying on dips, which in this case may reflect the behavior of retail investors or short-term traders entering the market.
However, the direction of large capital is different. The Chaikin Money Flow (CMF) index, which tracks the inflow and outflow of large capital, remains below the zero line, meaning that net capital is still flowing out of the asset overall.
Although the CMF shows mild divergence signals, it still cannot return to positive territory. This indicates that large holders remain cautious and are selling off PI during the periods of significant market correction. Simply put, while there is clear buying from retail investors, the net capital flow remains negative.
This issue often arises during rapid price drops, as retail investors tend to try to catch the market's lowest point.
The price level of Pi coin is crucial in determining the overall direction
The price of Pi Coin is near a critical zone, USD0.187, which is a short-term support level preventing Pi Coin from dropping further. If this support breaks, the price structure will deteriorate rapidly.
If the price moves below USD0.174 (which is the current all-time low according to CoinGecko), there is a tendency for significant downward pressure to arise. Referring to Fibonacci extensions, the next key support target is around USD0.130, which would create a new low.
To create a significant rebound, the price of Pi Coin must return above USD0.213. Closing a 12-hour candle above this level will help alleviate selling pressure and challenge the steep price drop pattern. However, as long as this is not achieved, the rebound will remain fragile.