PI Coin has shown a steady trend even while most major coins struggled during November. However, the atmosphere has changed this week. This token has recently dropped nearly 10% over the last 7 days, and has fallen more than 4% in the last 24 hours. It has fallen below key support levels, and a distinct pattern break has been confirmed on the daily chart, which many traders may see as a 'catastrophe' warning signal. If the selling pressure continues, it could plummet to an all-time low.
The most important question now is whether the chart can recover this time.
Pattern breakdown...path to new lows opens.
The Pi coin has completed a standard head and shoulders pattern by dropping below the neckline around $0.219. This may indicate a potential downward reversal.
Generally, the price drop is calculated from the distance between the neckline and the head. This projection suggests an additional decline of about 22.8%, indicating that the Pi coin could approach the $0.169 level.
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The reason this is important is that the current historical low of the Pi coin is around $0.172 according to CoinGecko. If it falls to $0.169, it will record a new low. However, two indicators can still help mitigate the risk of the PI.
Selling pressure is strong, but buying power has life.
There are some support signals from large buyers. The first is the money flow. A small divergence is observed in the Chaikin Money Flow (CMF) indicator, which tracks large inflows and outflows of funds. From December 9 to December 11, the price recorded lower lows, but the CMF increased. This phenomenon can be interpreted as a signal that some buyers are absorbing the decline.
The CMF also broke above the short-term downward trend, but has not yet surpassed the zero line. The zero line is the point where the money flow transitions from net selling to net buying. The Pi coin needs this transition to be confirmed as a strong rebound signal.
The momentum indicator shows a similar pattern. The RSI (Relative Strength Index), which measures buying and selling pressure, formed another divergence. Between November 4 and December 10, the PI price formed higher lows while the RSI showed lower lows, indicating a hidden bullish divergence. This suggests that selling pressure is weakening.
These early signals may not reverse the downward trend, but they show that selling pressure has not completely taken control.
Key price for Pi coin…determines fate.
As of the time of writing, the Pi coin is trading around $0.208. The most important line is $0.192. If it drops below this, it will open up to the pattern target of $0.169 and record a new low on the chart.
To recover, the Pi coin must first regain $0.233. This range corresponds to the right shoulder and could signal an early rebound. A complete trend reversal will only be confirmed when the price breaks above $0.284, which is the upper range of the head in the pattern.
Currently, the Pi coin is situated between selling pressure and early support signals. A downward breakout suggests a new low, but the divergence shows that buying pressure still exists. The next move depends on whether the support line at $0.192 will hold or turn into a downward trend.