Pi Coin has been one of the strongest moves this month. Bitcoin and Ethereum are down about 20% and 26%, respectively, while they are up about 11%. Even in the past 24 hours, the price of Pi Coin increased by about 2.24%.
But this strength also comes with a caveat. This chart shows a structure where any deceleration could trigger a 34% downside break if one major level fails. This begs the simple question: Is Pi Coin safe as long as it continues to perform, or are the signs pointing to the opposite?
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Price rise, trap hidden in the pattern
Pi Coin has formed a clear head-and-shoulders pattern, a structure that often appears before a breakdown. The neckline of this pattern is around $0.21. If PI price closes below that area, we would expect a 34% decline from the distance from the “head” to the neckline.
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To protect against risk, PI needs to break the head formation by moving above $0.29. If that happens, the price will rise even more.
Momentum makes that risk even heavier.
The Relative Strength Index (RSI), which tracks buying and selling strength, is showing hidden bearish divergences. From November 20th to November 26th, Pi Coin recorded lower highs, while RSI recorded higher highs. Hidden bearish divergences typically continue the prevailing trend, and despite the monthly rally, Pi Coin’s broader 30-day trend is weak.
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This means the rally is real, but the underlying structure warns that a pause could quickly shift momentum back to the downside. And it may not be healthy for Pi Coin price
Key levels that determine whether Pi Coin price can continue to rise
Pi Coin is trading around $0.26, but this level does not settle the debate. The key level to break the entire bearish pattern is $0.29.
If the daily closing price exceeds $0.29, the head-and-shoulders setting will be disabled, allowing Pi Coin to aim for higher values. It would show that Larry still has control. Until that happens, any decline should be watched with caution.
The first support is located near $0.23. If we lose, the focus shifts to the $0.20-$0.22 zone. The neckline level mentioned above falls into this zone.
If the daily close falls below this zone, the 34% downside target will be fully activated, pulling Pi Coin towards $0.19 and further below if market conditions weaken.
So the message is simple.
If Pi Coin continues to rise and clears $0.29, the uptrend will be maintained. A breakdown occurs when the rate slows down and drops below $0.20 to $0.22.
At the moment, Pi Coin does not have the luxury of “stepping on the brakes”. That trend will continue as long as the rise continues.
