Pi Coin has now fallen for the third consecutive week and has dropped significantly from the most recent local peak. The altcoin is struggling due to a lack of support from investors and general market uncertainty.
Although selling pressure previously prevailed, on-chain signals now show that at least one important factor is improving.
Pi Coin holders capitalize
The Chaikin Money Flow has shown a slow increase in recent days. This change means that capital is slowly flowing back to Pi Coin. Investors appear to be adjusting their stance and likely see the current prices as an interesting opportunity to buy.
Rising CMF values often indicate that confidence is growing. New inflows are important for any recovery, as sustained buying pressure helps to absorb selling pressure. If this trend continues, Pi Coin may gain the necessary momentum to stabilize and attempt to recover in the short term.
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Despite the better inflows, the macro indicators are still mixed. The Average Directional Index shows that the current downward trend is becoming almost stronger. If it rises above 25.0, it indicates strong bearish momentum and that sellers are dominating the market.
If it fails to break this boundary, it means that the trend is losing strength. In that case, selling pressure may decrease. This gives Pi Coin the opportunity to recover, especially if more buyers come in and market conditions are favorable.
Pi Coin is trading around $0.203 at the time of writing, just above the support at $0.198 and below the resistance at $0.208. The token is about 28% lower than the local top of $0.284. The price action mainly shows consolidation, with no clear breakout.
If the downward trend continues, Pi Coin is likely to move between $0.198 and $0.208. In this scenario, there is little upward potential, and the recovery will take longer. Prolonged consolidation may test the patience of investors during the current market uncertainty.
For a bullish scenario, sustained capital inflows are needed. Continued accumulation can help Pi Coin reclaim $0.208 as support. A convincing breakout could drive the price towards $0.217, with possibly more increases up to $0.224. This would invalidate the bearish expectation.
