The price of the Pi currency has begun to show early signs of recovery after weeks of pressure. The price movement still appears calm on the surface, having traded relatively stable over the past seven days. However, fundamentally, capital behavior is changing in a way that usually precedes major movements. Money is starting to return, and the decline is no longer being heavily sold off.
The focus is now very specific. The repeated interaction of Pi Coin with the $0.21 level shapes both momentum and trader behavior. Whether the price of PI finally moves away from this area or remains trapped in it, it is likely to determine the next significant trend.
Capital returns with absorption of the dip.
The first signal comes from capital flow.
The Chaikin Money Flow (CMF) tracks whether large money is flowing into or out of an asset by combining price and volume. When the CMF stays above zero, it indicates that buyers are generally in control.
The CMF of Pi Coin crossed above the zero line for the first time in weeks, also breaking through a descending trend line that had constrained buying attempts previously. This is significant because the last time the CMF failed at the same trend line after briefly crossing it, Pi Coin corrected by about 32%. This time, for the upside, the CMF must remain above the trend line and also above the zero line.
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The dip behavior reinforces this shift.
The Money Flow Index (MFI) measures buying and selling pressure by taking into account both price movement and trading volume. Unlike the CMF, which tracks broader capital flow, the MFI focuses on whether traders are actively buying the dip or selling into it.
Between December 6 and 19, the price of Pi Coin trended downward, while the MFI increased. This divergence shows that even as the price softened, buying was likely increasing with volume. In simple terms, sellers pushed prices down, but buyers quietly absorbed the supply.
When the CMF settles above zero, and the MFI rises during withdrawals, it usually indicates early accumulation rather than distribution. This combination suggests that capital is being concentrated, even if the price has not yet responded.
Why care about the price of Pi Coin at $0.21?
The level of $0.21 has dominated the price behavior of Pi Coin since late October. It has acted as both a ceiling and a floor, repeatedly pushing the price towards it.
When Pi Coin broke above $0.21 on October 26, the price rose by about 42%. When it lost the same level on December 11, the Indian index price dropped by about 11%. This date explains why the price continues to hover around this area and why PI traders consider it crucial.
If the price of Pi Coin can recover and maintain above $0.21, the next logical target is close to $0.24, near the structurally strong Fibonacci level of 0.618. This move indicates an increase of about 21% from current levels. However, if the price fails to break out of this area again, the market risks remaining within the range despite improved capital flows.
The inability to reclaim $0.21 with a daily close may open the downside near $0.19 or even $0.15 if capital flows weaken.
Currently, the setup for Pi Coin is largely live. Capital is returning, dips are being bought, and selling pressure has eased. But real progress will only come if the price of Pi Coin finally breaks free from its fixation on $0.21. Until then, accumulation can continue quietly, but the upside remains limited.
