Pi Coin has come under intense selling pressure over the past several weeks, with its price falling sharply to a multi-week low. The altcoin’s decline comes amid broader weakness across the crypto market, where Bitcoin’s correction has weighed heavily on altcoins with limited independent momentum.
As selling pressure persists, investor confidence in Pi Coin appears to be fading. Rising withdrawals and a lack of strong buying interest have prevented any meaningful recovery, leaving the asset vulnerable to further downside.
On-Chain Data Signals Weakening Investor Confidence
On-chain indicators paint a concerning picture for Pi Coin holders. The Chaikin Money Flow (CMF), a key metric used to track capital inflows and outflows, has plunged to its lowest level in the past eight months. This sharp drop indicates aggressive capital outflows, suggesting that investors are actively reducing exposure rather than accumulating at lower prices.
The sustained selling pressure reflects growing frustration among holders following multiple failed recovery attempts. Each bounce has been met with renewed selling, reinforcing bearish sentiment. As a result, many investors appear unwilling to wait for a turnaround and are choosing to exit positions to limit further losses.
Bitcoin Correlation Adds Downside Risk
Pi Coin’s broader market dynamics remain closely linked to Bitcoin’s price action. Currently, the correlation between PI and Bitcoin stands at 0.42, a moderately positive relationship that has strengthened steadily over the past three weeks—coinciding with Pi Coin’s recent decline.
This increasing correlation has worked against PI. As Bitcoin entered a corrective phase, Pi Coin followed suit, amplifying losses rather than showing resilience. A rising correlation during a downtrend often heightens risk, as it reduces the likelihood of an independent recovery unless Bitcoin stabilizes or Pi Coin benefits from a strong, asset-specific catalyst.
Key Price Levels Under Pressure
At the time of writing, Pi Coin is trading around $0.201, marking a 25% decline over the past 20 days. The latest sell-off followed a failed breakout attempt above the $0.272 resistance level, which proved to be a decisive rejection and signaled a shift toward sustained bearish momentum.
PI is now hovering just above the $0.198 support, an eight-week low that has historically acted as a critical demand zone. This level is crucial for bulls to defend. However, bearish indicators remain dominant, and a confirmed breakdown below $0.198 could open the door to further declines toward $0.188, or even $0.180, extending the current downtrend.
Is a Short-Term Recovery Still Possible?
Despite the prevailing bearish outlook, a recovery scenario cannot be ruled out entirely. If historical price behavior repeats, Pi Coin could attempt a short-term bounce from the $0.198 support level. A successful defense of this zone may help restore some confidence among short-term traders.
For bullish momentum to regain credibility, PI would need to reclaim $0.208 as a support level. Such a move would weaken the bearish thesis and could allow price to push toward $0.217, offering temporary relief. However, without stronger volume or a shift in broader market sentiment, any rebound is likely to remain fragile.
Final Thoughts
Pi Coin remains under significant pressure as investor outflows rise and its correlation with Bitcoin increases downside risk. Until market conditions improve or PI shows signs of independent strength, caution remains warranted for traders and investors alike.
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