Pi Coin price is attempting a short-term recovery after the recent slump and is showing a gradual upward trend. Although buying interest has improved, the macro outlook remains cautious.
Structural indicators suggest that the recent rally may be corrective, and if momentum wanes, the altcoin will be exposed to renewed downside pressure.
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Pi Coin investors are showing bullish stance
Pi Coin is currently forming a hidden bearish divergence on the chart. From December 19 to January 3, prices established lower highs, while the relative strength index established higher highs. This divergence indicates that rising prices lack strong fundamental support.
Hidden bearish divergences typically appear during correctional pullbacks within a downtrend. Despite the short-term optimism, selling pressure remains prevailing behind the scenes.
This setup suggests that the main bearish trend could resume as temporary buying interest wanes and Pi Coin’s downside risk increases.
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Macro indicators present a more balanced picture. Chaikin money flow exceeded the zero line and reached almost a monthly high. The CMF tracks volume-weighted capital flows and is a reliable indicator of investor commitment in uncertain circumstances.
A rise in CMF indicates a sustained accumulation rather than a speculative spike. Investors appear eager to deploy capital despite mixed technical signals. This accumulation has supported recent price stability, limiting severe losses and providing Pi Coin with a short-term cushion against broader market volatility.
PI prices face barriers
The immediate challenge for Pi Coin remains the resistance at $0.214. This level roughly coincides with the 23.6% Fibonacci retracement, reinforcing its importance. Multiple rejections near this zone highlight sustained selling pressure from traders defending higher cost reference levels.
A decisive turnaround is needed to break out of the bearish momentum. If the closing price remains above $0.214, a breakout of the trend line will be confirmed. Such a move could open the rally towards $0.226, with further upside possible if volume picks up and broader sentiment improves.
If the bullish momentum cannot be maintained, Pi Coin will be exposed to another round of decline. A decline below $0.207 could trigger an acceleration of selling. In this scenario, the price could test the key support at $0.199, and if buyers are unable to defend that level, the general bearish outlook will be strengthened.
