Pi Coin has been experiencing consistent selling pressure over the past few weeks, which has pushed the coin's price to a multi-week low. Pi Coin is declining along with the overall market weakness, and Bitcoin is the main factor dragging cryptocurrencies down.
Weakening support from investors and increasing withdrawals only intensify the downward pressure, limiting the chances for a real rebound.
Pi Coin is falling and follows Bitcoin
On-chain indicators show deteriorating sentiment among Pi Coin holders. The Chaikin indicator shows large withdrawals, recording an eight-month low. This reading signals strong capital outflow. It means that investors are limiting their involvement amid persistent price weakness.
The constant sale confirms a decline in confidence after several unsuccessful attempts to rebound. Many holders do not want to wait for a trend reversal, choosing to exit their positions.
Pi Coin remains strongly correlated with Bitcoin's performance. The correlation between Pi and Bitcoin is currently 0.42. The relationship became positive after nearly three weeks of increases, which coincides with the recent declines of Pi Coin.
This correlation harmed Pi Coin. When Bitcoin corrected, Pi Coin also fell, deepening losses. Increasing correlation during a downtrend often increases vulnerability, as an independent rebound without market stabilization or specific impulse becomes less likely.
At the time of writing this text, Pi Coin costs $0.201, which means a decrease of 25% over 20 days. The downward movement occurred after an unsuccessful attempt to break above the resistance of $0.272. A rebound from this level confirmed the bearish dominance.
Pi Coin is now testing support at $0.198, which has been a local low for eight weeks. This level remains crucial. However, bearish signals prevail. A breakout would open the way towards $0.188 or even $0.180 and extend the downtrend.
A rebound scenario is possible if history repeats itself. A successful rebound from the level of $0.198 could restore short-term faith.
If Pi Coin regains support at $0.208, the bearish argument will weaken. Therefore, such a move could direct Pi towards $0.217 and provide temporary relief.
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