Pi Coin has faced continuous selling pressure over the past few weeks, causing the price to drop to its lowest level in several weeks. Meanwhile, this altcoin has significantly declined along with the overall weak market, with Bitcoin being a major drag.
The retreating support from investors and increased withdrawals have intensified downward pressure, causing meaningful recovery efforts to stall.
coin Pi follows in the footsteps of Bitcoin.
Indicators on the blockchain reflect worsening confidence among Pi Coin holders. The Chaikin Money Flow indicates significant withdrawals, with the value dropping to an eight-month low. This figure suggests a heavy outflow of capital, causing investors to reduce risk amidst persistently weak prices.
This ongoing selling pressure reflects reduced confidence following repeated failed recovery attempts. Many holders of this coin seem unwilling to wait for recovery any longer and choose to close their positions instead.
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The long-term momentum of Pi Coin remains closely linked to Bitcoin's performance, with the correlation rate between PI and Bitcoin currently at 0.42. This correlation has turned positive after nearly three weeks of continuous improvement, which aligns with the recent price drop of Pi Coin.
This phenomenon negatively affects PI because when the Bitcoin market consolidates, Pi Coin also drops, leading to heavier losses by default. Higher correlation during downturns often increases vulnerability, as the chances of self-recovery diminish without support from the overall market or specific positive factors.
While writing this article, coin Pi is trading at 0.201 USD, reflecting a 25% decline over the past 20 days. This drop follows unsuccessful attempts to break through the resistance at 0.272 USD, being rejected at that level, thus indicating a clear shift towards continued downward pressure.
Currently, coin Pi is testing the support level at 0.198 USD, which is the lowest point in eight weeks and has previously served as a support base. This level remains significant. However, the downward signals persist, and a breach of this level could push PI down to 0.188 USD or possibly break down to 0.180 USD, further prolonging the downward trend.
However, there is still a chance for a recovery if the historical pattern repeats itself. A strong bounce from 0.198 USD could restore short-term confidence if coin Pi can hold above the support at 0.208 USD. The downward trend would weaken. Movements like this could help push PI up towards 0.217 USD, indicating a short-term recovery.
