Quick Summary
- The main indicator of a substantial weakness in the market is 72 percent plunge in price of PI coin comparing to its February high.
- It is now trading at a low price of 0.63, way below critical support regions.
- Heavy selling is evident as made by bearish indicators such as BoP and CMF.
- Super trend indicator proposes further slump.
- Potential support: $0.40, all time low of the token.
- Bullish possibility in case of a break over the resistance at $0.86 where the target stands at $1.01.
The PI Coin at the Brink: A Rough Ride Downhill
The PI coin has been experiencing severe pressure within the last two months, and the cryptocurrency has declined by a mind-blowing 72% proportionately since February 26. At its present price of 0.63, it has dropped significantly against its past pricing and it still does not seem to have evidence of recovery, at least, as at now. Mixed emotions surround the traders and fiasco is dictated by bearish sentiment all over the market. At this point, the trend of PI price seems to be orchestrated by sellers and buyers are not able to doorslice.
The Technical Indicators Indicate the Control of the Market by Sellers
Technical indicators are extremely indicating that PI is still on its distribution phase wherein the holders of the tokens are selling their assets and not gathering more of them. A major instrument that portends this is the Balance of Power (BoP) indicator. It is a method that compares the forces of buyers and sellers on a certain period of time by comparing the closing prices with the trading ranges.
The BoP is becoming negative in the case of PI, and this aspect can confirm the above as selling pressure continues to overshadow any buying developments. This is a clear indication that the traders are not optimistic about imminent rebound and instead are liquidating the positions—a process that contributes into the stratifying trend.
Chaikin Money Flow Adds Up to the Bearish Story
The second sign that is serving this bearish speculation is the Chaikin Money Flow (CMF). This indicator interprets the amount of money going in and out of a cryptocurrency. Positive and negative CMF usually denotes accumulation and distribution respectively.
At present, the PI CMF is -0.12 and it is much lower than the neutral zero mark. This is not only an affirmation that traders are selling out their stash but it also means that no new money is coming into the PI market. Simply stated, an outflow of money from PI continues, which contributes to the hypothesis that the bearish control over the token is solid.
Super Trend Indicator Indicates That the Downtrend Will Be Continued
The Super Trend indicator that find a lot of usage in determining market trends also confirms working against PI. By virtue of an asset trading below the Super Trend line, this is normally indicative of a negative trend hence, that is exactly where PI is at, significantly lower than the mark of $0.93, which was once a dynamic support.
This indicator considers volatility and movement of price and when price remains below the trend line over a long duration, it usually indicates that the downtrend is still vibrant. If a reversal signal is not witnessed any time soon, there is a probability that PI will panic and plunge further in the near future.
At What Costs Can PI Be Done? The Risk of 0.40
At the rate at which the selling is going on currently, PI may as well drop to its long-term low price of 0.40. This would represent another 35 percent loss in price, which came off already lower subsequent prices and fully retraced the last bullish streak that the token has gone through. This would only hurt investor sentiment even more and also cast doubt as to whether or not PI would be viable in the long run unless there is a fundamental shift in the dynamics of it, or unless the market dynamics changes considerably.
There Is a Silver Lining: Is PI Turnaround Possible?
Guess the future does not look too bright for PI but there is still hope. In case the market begins to pull back and the interest of buyers returns, the improvement of the token might be hindered directly at the $0.86 level. A move above this would be matter of confidence and would also draw momentum traders into the market.
In the event of such happening, the immediate target would then be in the region of around 1.01 which translates to a 60 percent potential upside in PI trading at the current price. This action may be seen as a shift in the direction of things and perhaps a little light at the end of the tunnel may be coming back to the PI community.
Closing Remarks: Pay Attention to the Moving On
The recent performance of PI coin was un impressive and a strong indication that bears dominate the arsenal according to technical signals. Nonetheless, cryptocurrency markets are infamous and volatile and may turn in an instant. Buyers intervene towards important support areas and provided they can crack through the points of resistance, we may have a sudden rebound.
At the present point, it is worth being cautious, however, to those believing in a long-term perspective of PI, it may an opportunity to follow the token and observe possible entry points in case they will appear, should the signals on reversal begin to appear.