Pi Coin has experienced persistent selling pressure in recent weeks, pushing the price down to a multi-week low. The altcoin has fallen sharply alongside weakness in the market overall, where Bitcoin has pulled PI down further.
Declining investor support and increasing withdrawals have intensified downward pressure and limited the potential for any significant rise.
Pi Coin follows Bitcoin
On-chain indicators show deteriorating sentiment among Pi Coin owners. Chaikin Money Flow indicates large withdrawals, with the indicator at its lowest level in eight months. This signals strong capital outflow, suggesting that investors are reducing their exposure due to persistent price decline.
The persistent selling reflects weakened confidence after repeated failed attempts at a rise. Many owners appear unwilling to wait for a rise and instead choose to sell.
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Pi Coin's macro trend is still closely linked to Bitcoin's development. The correlation between PI and Bitcoin is now at 0.42. This relationship turned positive after rising steadily for nearly three weeks, coinciding with the period when Pi Coin has fallen in price.
This correlation has been negative for PI. As Bitcoin corrected downward, Pi Coin followed, and the losses became greater. An increasing correlation during a declining market often makes assets more vulnerable, as independent rises become less likely without broader market support or unique catalysts.
As of now, Pi Coin is trading at $ 0.201, reflecting a decrease of 25% over the last 20 days. The drop came after a failed attempt to break above resistance at $ 0.272. Rejection at this level marked a shift to sustained bearish momentum.
Pi Coin is now testing the support level at $ 0.198, an eight-week low that has previously acted as a support barrier. This level remains critical. Bearish signals persist, however, and a break could send PI down towards $ 0.188 or even $ 0.180, which would extend the downtrend.
A bullish scenario is possible if historical patterns repeat. A successful rise from $ 0.198 could restore short-term confidence. If Pi Coin regains $ 0.208 as support, it would weaken the bearish picture. Such a move could help PI rise towards $ 0.217 and provide temporary relief.
