Pi Coin has been struggling since the end of November. The peak seen at the end of the month was followed by a price drop of about 28%, which wiped out almost all previous gains. Within a week, the price of Pi Coin has dropped by about 8.6%, and over the last three months, the losses are now over 40%.
Although the situation has been weak, the latest chart data reveals a new development behind it. The pressure of the mood seems to be turning, which raises the question of the end of the correction. Does this lead to a recovery or a complete reversal? We will find out soon!
Sentiment pressure is decreasing, but buyers are still hesitant.
On the daily chart, Pi Coin has formed a hidden bullish divergence between November 4 and December 11. During this time, the price made a higher low, but the Relative Strength Index (RSI) reached a lower level. RSI measures sentiment by tracking the speed of buying and selling movements. When the price remains stronger while the trend weakens, it often indicates that selling pressure is beginning to decrease.
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This type of divergence is often seen at the end of steep dips. It does not alone confirm a reversal, but it usually precedes attempts at recovery when sellers begin to lose control.
However, mere sentiment is not enough. The Chaikin Money Flow indicator, which tracks whether large buyers or sellers dominate the volume, continues to give warning signs. CMF is still close to testing a descending trend line (connecting lower highs) and is also moving below the zero line. This indicates that large cash flows have not yet supported Pi Coin.
Simply put, selling pressure appears to have weakened, but large buyers are not fully onboard. This keeps the recovery setup fragile. Unless cash flows improve, upward attempts will likely face resistance. However, if the CMF drops below the trend line, the recovery setup (for Pi Network's coin) could be completely invalidated.
Pi Coin price levels that define the next steps
The price chart of Pi is now at a turning point. To confirm a recovery structure, Pi Coin must rise above the $0.222 area. A sustained move above this level would mean an increase of about 7% and would indicate that buyers are willing to defend higher levels again. If this happens and market conditions stabilize, the price could rise to $0.244 and possibly as high as $0.253.
Only a move above $0.284 (the late November peak) could indicate the beginning of a reversal. This point currently seems distant.
Support is soon found just below the current level. The $0.203 level is critical. A daily closing price below $0.203 would significantly weaken the recovery setup and increase downward pressure again. If this level fails, Pi Coin may test lower areas and the correction could deepen to a new level.
The recovery setup will only be confirmed if the price rises while the CMF moves towards zero. Without this confirmation, attempts at upward movement are at risk of stopping quickly.