Pi Coin has struggled to maintain the momentum of its late October recovery, and the altcoin is facing renewed selling pressure this week.
A combination of market uncertainty and investor hesitance has resulted in continued declines wiping out a significant portion of recent gains. Both external market conditions and internal investor sentiment appear to be driving this downtrend.
Pi coin outflow increases
The Chaikin Money Flow (CMF) indicator shows that Pi Coin investors are actively withdrawing funds from the market. The index is now below the neutral zero line at its lowest level in almost two months, suggesting that outflows are predominant. This suggests investors may be locking in profits and reducing exposure as the recovery slows.
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This change in sentiment has weakened Pi Coin’s near-term outlook, reflecting a decline in confidence among holders. The continued selling pressure indicates that participants are becoming cautious about speculation. Unless inflows return, the chances of a sustainable recovery appear limited as liquidity continues to flow out of the market.
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From a broader perspective, Pi Coin’s momentum appears to be leaning bearish. The Moving Average Convergence Divergence (MACD) indicator is on the verge of confirming a bearish crossover. The signal line is approaching the MACD line (blue), suggesting a possible change from neutral to negative momentum in the coming sessions.
Historically, such crossovers have caused notable corrections in Pi Coin. The impending signals highlight increased downside risks as market conditions continue to favor sellers over buyers.
PI price may fall further
Pi Coin price has fallen nearly 15% over the past week as it failed to break through the resistance level at $0.260. At the time of writing, the altcoin is trading at $0.220, reflecting a weakening technical position due to waning market support and declining investor optimism.
If the downtrend continues, Pi Coin price could drop below $0.209 and re-enter the consolidation zone between $0.209 and $0.198. This previously seen pattern could delay any recovery attempt and extend the bearish phase for several more weeks.
However, a rebound from current levels could change momentum. If Pi Coin regains support at $0.229, it could attempt a rally towards the resistance at $0.246. Sustaining capital inflows and investor interest will be key to overriding the bearish outlook.
