The cryptocurrency market is witnessing a widespread pessimistic sentiment among the Pi Coin investor community, as strong selling pressure continues to hinder this altcoin’s recovery to key support levels.
Capital Outflow and Diminished Confidence
According to data from the CMF (Chaikin Money Flow) indicator, Pi Coin is experiencing a significant capital withdrawal wave, with trading values nearing historical lows. The lack of new capital coupled with increased selling pressure has elevated short-term loss risks to alarming levels.
Another concerning factor is the strong correlation between Pi Coin and Bitcoin, with a coefficient of 0.92. This means Pi Coin closely follows every movement of the world’s largest cryptocurrency. With Bitcoin struggling to maintain the $115,000 level, Pi Coin faces a high risk of being dragged down into a deeper downtrend.
Related: Gold Continues to Set ATH, Bitcoin May Follow This Wave
Price Outlook in the Coming Period
Currently, Pi Coin is trading around $0.353, trapped in a downward trend that has lasted over three months, with multiple failed breakout attempts. Analysts warn that if the crucial support level of $0.344 is breached, the price of Pi Coin could plummet to the $0.322-$0.300 range, establishing a completely new historical low.
However, there is a positive scenario if Pi Coin can surpass the resistance level of $0.362. In this case, the coin could recover to $0.401, creating the necessary stability and providing some confidence for holding investors.
Given the current situation, investors are advised to cautiously monitor the developments of both Pi Coin and Bitcoin in the coming days to make informed decisions.
