Pi Coin has dropped about 7% in the last 24 hours, following the broader market pullback. Even with this impact, its monthly movement is still close to -8.7%, which is better than the approximately 21% loss of Bitcoin and the 26% drop of Ethereum in the same period.
The question now is simple: is this the beginning of a deeper decline or just a pause before the next rise of PI?
New low shock and then two metrics indicate that the decline may be slowing down
The last drop began with a clearly bearish event on the 12-hour chart. PI completed a downward crossover where the 20-period exponential moving average (EMA) fell below the 100-period EMA. EMA is a moving average that gives more weight to recent prices, allowing traders to see short-term momentum more clearly.
This crossover generally puts pressure on the price in the short term, which we just saw with the daily loss of 7% and a loss of almost 10% from yesterday's peak.
But, beneath the surface, two internal metrics now suggest that the worst of this wave may be close to ending.
The first is the Relative Strength Index (RSI), which measures momentum. Between November 21 and December 1, the price of PI formed a higher low, but the RSI formed a lower low. This is a hidden bullish divergence. It often appears when a trend still wants to rise after a shakeout.
However, the RSI is still not completely in the oversold zone and may end up dropping a bit more before recovering, along with the price.
The second clue comes from the Chaikin Money Flow (CMF), which tracks whether large money investors are buying or selling. CMF has a strong history with PI. From November 3 to 19, the CMF jumped over 313%. During almost the same period, from November 4 to 20, the price of Pi Coin rose about 30.75%. When the CMF surged, the price quickly followed.
Currently, the CMF is still above zero and has started to rise again. The CMF needs to break above the descending trend line that connects its recent lower highs. If this breakout occurs while the RSI maintains its divergence, the scenario supports a more significant recovery.
Price levels of Pi Coin that will confirm or end the recovery case
If PI buyers can build on this initial internal strength, the first target is to recover $0.238 with a clear daily close. From the current zone near $0.229, this would mean a recovery of approximately 4%.
A close above $0.238 paves the way for the next resistance areas near $0.255 and $0.266. If the broader market improves, the price of Pi Coin may even retest $0.284, which marked the peak of the last significant rise.
On the downside, PI must protect the support around $0.225 and $0.223. Losing both levels would cancel the hidden bullish divergence and shift focus to the next demand area near $0.209.
Currently, Pi Coin has suffered a clear impact after the bearish EMA crossover, but it is still holding better than Bitcoin and Ethereum on a monthly view. The RSI divergence and a rising CMF indicate that the current decline may be closer to the end than the beginning.
Whether this turns into a real recovery or just a brief pause depends on two simple tests: the CMF breaking its trend line and PI closing again above $0.238 without losing $0.223 along the way.
The Pi Coin article plunges, but initial signs of relief point to a rapid recovery first seen in BeInCrypto Brazil.
