Pi Coin continues to face heavy downside pressure, and so far, the market has shown little sign of relief. Selling momentum remains dominant, raising serious concerns about whether retail traders are stepping in too early—attempting to buy the dip in what increasingly resembles a classic falling knife scenario.
Over the past 24 hours, Pi Coin has dropped 5.6%, while the seven-day loss now stands at 11.5%. Since late November, PI has declined by approximately 32%, placing it among the weakest-performing tokens during the current market correction. With price still trending lower, the key question remains:
Is this a dip worth buying—or a trap that hasn’t finished cutting lower yet?
Daily Chart Confirms a Falling Knife as Bears Maintain Full Control
In technical analysis, a falling knife refers to a market that continues printing lower lows without forming a base or consolidation zone. Pi Coin’s recent price action fits this definition clearly.
On the daily chart, PI remains decisively below all major exponential moving averages (EMAs)—including the 20-day, 50-day, and 100-day EMAs. These moving averages act as dynamic resistance levels and trend indicators. When price consistently trades below them, it confirms bearish momentum.
Every attempt at a relief rally has failed beneath these EMA levels, reinforcing the idea that sellers are still in control. For any meaningful rebound to begin, Pi Coin would first need to reclaim the 20-day EMA, which currently serves as the nearest technical barrier.
Bull Bear Power Confirms Sellers Still Dominate
The Bull Bear Power (BBP) indicator further strengthens the bearish outlook. BBP measures the strength of buyers versus sellers by comparing price extremes to a moving average.
Since December 1, BBP has remained deeply negative and continues to trend lower. This suggests sellers are not only dominant but are increasing pressure rather than losing momentum. Importantly, there is no sustained bullish divergence visible yet—meaning buyers have not mounted a meaningful counterattack.
As long as BBP remains negative and price stays below key EMAs, Pi Coin’s structure remains firmly in falling knife territory—not a confirmed dip.
Short-Term Buyers Are Active, but Smart Money Is Still Exiting
A closer look at the 12-hour chart reveals a more nuanced picture. While Pi Coin price continues to make lower lows between December 11 and December 15, the Money Flow Index (MFI) has started forming higher lows.
The MFI combines price and volume to track buying and selling pressure. Rising MFI during falling prices often signals dip-buying activity, typically driven by retail traders or short-term speculators.
However, when we shift focus to larger capital flows, the story changes.
Chaikin Money Flow Shows Capital Still Leaving Pi Coin
The Chaikin Money Flow (CMF) indicator—which tracks institutional and large-holder inflows and outflows—remains below the zero line. This confirms that net capital is still exiting Pi Coin, despite small signs of divergence.
While CMF has slightly improved, it has not flipped positive, meaning big players remain cautious and are not aggressively accumulating at current levels. This imbalance—retail buying while larger capital continues to sell—is a common feature during extended downtrends and falling knife setups.
In simple terms:
Retail is buying the dip, but smart money hasn’t confirmed a bottom yet.
Key Pi Coin Price Levels That Will Decide the Next Move
Pi Coin is now trading near a crucial technical decision zone.
$0.187 is the immediate support level preventing further downside. A decisive break below this level would significantly weaken the structure.
$0.174, the current all-time low according to CoinGecko, is the most critical level. A clean breakdown below this price could trigger accelerated selling pressure.
Based on trend-based Fibonacci extensions, the next major downside target sits near $0.130, which would mark a new all-time low for PI.
On the upside, any meaningful recovery must begin with a reclaim of $0.213. A 12-hour close above $0.213 would reduce immediate bearish pressure and challenge the falling knife narrative. Until that happens, all rebounds should be treated as fragile relief rallies, not trend reversals.
Final Takeaway: Dip or Falling Knife?
At this stage, Pi Coin remains in a high-risk technical structure. While short-term buyers are clearly active, broader trend indicators and capital flow data suggest the market has not yet found a durable bottom.
Catching falling knives can be costly—especially when trend momentum, EMAs, and capital flows all point in the same bearish direction. Until PI reclaims key resistance levels and attracts sustained inflows from larger participants, downside risk remains elevated.
Patience, confirmation, and risk management will be critical in the days ahead.
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