Pi Coin's price had a stable development in November when most major tokens struggled. But the tone changed this week. The token is down nearly 10% over the past seven days and more than 4% in the last 24 hours. The decline below a key level confirmed a clear break in the pattern on the daily chart, something many traders may associate with 'apocalypse' risk because it could push the price towards a new bottom if selling continues.
The main question now is whether the chart can recover this time.
Pattern break opens the way for a new bottom
Pi Coin fell below the neckline near $ 0.219 and completed a classic head-and-shoulders pattern signaling a possible bearish reversal.
The typical downside projection comes from the distance between the neckline and the head. This projection suggests a possible drop of around 22.8%, and then Pi Coin will be near $ 0.169.
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This is important because Pi Coin's current lowest level is near $ 0.172 according to CoinGecko, so a drop towards $ 0.169 will create a new bottom. However, two measurements may still help PI avoid risk.
Sellers are strong, but buyers still show signs of life
There are still signs of support from larger buyers. A signal comes from the money flow. Chaikin Money Flow (CMF), which tracks how much money flows in or out, shows a slight divergence. Between December 9 and December 11, the price made a lower bottom, but CMF rose. This usually signals that some buyers are absorbing price drops.
CMF has also broken above its short-term downward trend but has yet to move above the zero line. The zero line indicates when the money flow shifts from net selling to net buying. Pi Coin needs that shift to confirm strength.
Momentum shows a similar picture. The Relative Strength Index (RSI), which measures buying pressure and selling pressure, formed its own divergence. Between November 4 and December 10, PI's price made a higher bottom, but RSI made a lower bottom — hidden bullish divergence. This could mean that selling pressure is starting to wane.
These early signals do not change the break, but they show that sellers do not have full control.
Key Pi Coin price levels determine fate
Pi Coin's price is trading near $ 0.208 at the time of writing. The key line is $ 0.192. A break below this level will open the way towards $ 0.169 — the target level in the pattern — and establish a new bottom for the chart.
To achieve an increase, Pi Coin must first reclaim $ 0.233. This level is above the right shoulder and will indicate early improvement. A full trend reversal only occurs if the price moves above $ 0.284, which is the zone above the head in the pattern.
Right now, Pi Coin finds itself between pressure and early signs of support. The break points towards a new bottom, but the divergences show that buyers are still active. The next development depends on whether the price holds the support level at $ 0.192 or succumbs to the downtrend.
