Understanding Pi Coin’s Recent Price Dip
Over the last 24 hours, Pi Coin experienced a significant downturn, dropping nearly 7% amidst a larger market pullback. Despite this, its monthly performance of -8.7% remains more favorable in comparison to Bitcoin and Ethereum, which have seen losses of roughly 21% and 26%, respectively. But the critical question remains: is this just a temporary stumble, or the start of a prolonged downward trend?
Key Technical Indicators for Pi Coin
On the 12-hour chart, the bearish crossover of the 20-period and 100-period Exponential Moving Averages (EMA) has sparked intense downward pressure, leading to the recent price decline. However, deeper analysis reveals two bullish indicators that could signal a reversal:
- Relative Strength Index (RSI): A hidden bullish divergence is forming as prices create higher lows while RSI registers lower lows. This suggests potential upward momentum, although the RSI hasn’t entered oversold territory just yet.
- Chaikin Money Flow (CMF): The CMF remains above zero and is curling upward, hinting that large institutional players may still be accumulating Pi Coin. Historically, an increase in CMF has been a precursor to significant price upticks.
Resistance and Support Levels to Watch
If buyers successfully capitalize on these positive technical signals, a daily close above $0.238 could initiate a rebound toward resistance points at $0.255 and $0.266. In more favorable market conditions, this could even extend to $0.284, marking the next bullish milestone.
However, on the flip side, losing support at $0.225–$0.223 could nullify any bullish divergence and shift focus to the next demand area around $0.209. Maintaining these levels is crucial for stabilizing the current trend.
Is Now the Time to Watch Pi Coin?
While the bearish EMA crossover has put significant pressure on Pi Coin, it remains more resilient than many of its crypto counterparts. RSI and CMF divergence hint that the current price slump might be approaching its end, setting the stage for a potential rebound. However, everything hinges on breaking CMF’s trendline and achieving a daily close above $0.238 without losing the critical $0.223 support level.
Recommendation: Stay Informed
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