Pi Coin (PI) witnessed a sharp price increase of 32% in the past 24 hours, raising hopes for a sustained rally. However, the optimism was short-lived as investors appeared to take advantage of the temporary rally and reduce their holdings.
The altcoin’s momentum is currently facing further pressure, with technical indicators suggesting it could collapse if the sell-off continues.
Rapid increase in Pi coin outflow
The Chaikin Money Flow (CMF) indicator shows a worrying situation for Pi Coin. Over the past 24 hours, CMF has recorded a significant decline, dropping to its lowest level in nearly two months. This trend reflects large capital outflows and suggests that traders may have booked profits quickly instead of holding on for further gains.
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Such a sharp decline in CMF is often indicative of growing bearish sentiment. Pi Coin holders appear to have exited their positions amid a 32% intraday price increase, leading to large outflows. This sudden reversal in sentiment could limit the prospects for a short-term recovery, especially if investor confidence continues to decline.
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At the macro level, Pi Coin’s Relative Strength Index (RSI) shows a different picture. The RSI has risen sharply over the past 24 hours, moving from bearish territory below 50.0 to the positive zone. This upward shift usually signals renewed bullish momentum and the possibility of a short-term rally continuing.
However, continued capital outflows could hamper the rally despite an improvement in the RSI. If the sell-off continues, the positive technical momentum could be offset and Pi Coin price could remain range-bound.
PI price may struggle to rise
Pi Coin price remains at $0.229 at the time of writing, just above key support at the same level. This zone could be the starting point for a potential pullback if buyers re-enter with confidence.
If Pi Coin manages to hold and rebound from $0.229, it could rise to $0.256 or even higher. Such a move would signal renewed strength in the market and a partial recovery from recent profit-taking.
Conversely, if the $0.229 support fails, the price could fall to $0.209 and retest $0.198. This would invalidate the bullish outlook and confirm a short-term bearish continuation for Pi Coin.
