Pi Coin has seen its price fall sharply this week, suggesting a near-term bullish pattern even as its broader outlook weakens.
Altcoins are looking to stabilize after recent volatility, but macro settings suggest the recovery could be short-lived before a deeper decline begins.
Pi Coin cannot escape from bearish fate
The Chaikin Money Flow (CMF) indicator shows that inflows are slowing, although they have not completely disappeared. This shows that investors have not completely abandoned Pi Coin despite the recent decline. Prolonged inflows are a somewhat encouraging sign, as they suggest that there is still some confidence in the near-term recovery of assets.
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However, this feeling is fragile. These slow inflows could easily turn into outflows if market conditions change or there is another bearish turn. So far, this indicator supports a moderately bullish response, but persistent uncertainty continues to weigh on investor confidence.
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From a macro perspective, Pi Coin is showing signs of forming a bearish pennant pattern. This structure typically appears during a downtrend and indicates a brief consolidation phase followed by bearish momentum. Pi Coin has already established both a clear downward price trend and consolidation within a narrow range, increasing the likelihood of a collapse.
If the bearish pennant plays out as expected, Pi Coin could face further significant declines with a macro target near $0.182. This level is consistent with broader technical weaknesses and reflects a decline in market risk appetite.
PI price is optimistic in the short term
Pi Coin is trading at $0.232 at the time of writing, marking a 16% decline over the past few days. The altcoin is currently above the $0.224 support level while staying within an ascending channel and testing the lower trendline of support.
This positioning could cause a short-term rebound. Pi Coin could recover towards $0.246 and cross $0.250 if the channel structure remains intact. Such a move would be consistent with the temporary bullish sentiment suggested by the CMF.
However, if market conditions worsen or investor sentiment weakens, Pi Coin risks losing support at $0.224. Below this level, the price will fall below $0.217, invalidating short-term bullish theories and potentially reinforcing a broader bearish pattern.
