Pi Coin continues to drop for the third consecutive week, plummeting sharply from the recent local peak. This altcoin is facing many difficulties due to weak buying power from retail investors and the overall market sentiment still being cautious.
Despite selling pressure dominating previous sessions, current on-chain signals indicate that at least one important factor is improving.
Retail investors holding Pi Coin are seizing the opportunity
The Chaikin Money Flow indicator is showing slight signs of increase in recent days. This change indicates that capital flows are beginning to return to Pi Coin. It seems that many retail investors are considering buying in, believing this is an attractive price range for accumulation.
The CMF index increasing often reflects confidence in the market's upward trend. The influx of new capital is a key factor for recovery efforts, as sustained buying power will help absorb selling pressure. If this trend continues, Pi Coin may regain momentum to stabilize and have the opportunity to bounce back in the short term.
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Although there are signs of improved cash flow, the macro indicators are still unclear. The Average Directional Index shows that the recent downtrend is preparing to strengthen. If it exceeds the 25.0 threshold, this will confirm that the bears dominate and the downward pressure may continue to prevail in the market.
However, if it cannot exceed this level, the downtrend will significantly weaken. At that point, selling pressure may gradually decrease. This will give Pi Coin a chance to recover, especially if buying power continues to increase along with support from the market.
Pi Coin is currently trading around 0.203 USD at the time of writing, holding above the support level of 0.198 USD but still below the resistance level of 0.208 USD. This token has now decreased by about 28% from the recent local peak of 0.284 USD. Price movements indicate that Pi Coin is accumulating sideways, with no clear signs of a breakout.
If the downward momentum continues to strengthen, Pi Coin is likely to remain within the range of 0.198 USD to 0.208 USD. Trading sideways in this price range will limit the chances of price increase and prolong the recovery time. Prolonged accumulation may also cause retail investors to lose patience amid significant market fluctuations.
The positive scenario depends on the continued flow of funds. If accumulation continues, Pi Coin may surpass the 0.208 USD region to become support. If the breakout is successful, the price may aim for 0.217 USD, and further could reach 0.224 USD. If this happens, the pessimistic view on Pi Coin will no longer be accurate.
