Pi Coin has recently faced challenging price volatility, culminating in a new record low (ATL) earlier last week. Despite the ongoing downward trend, Pi Coin is close to achieving a new ATL, as investor sentiment continues to deteriorate, reflecting a lack of optimism in the market.
Pi Holders Are Choosing Not to Hold
The correlation coefficient between Pi Coin and Bitcoin is currently at 0.93, indicating a strong relationship between these two assets. When Bitcoin experiences volatility and instability, Pi Coin tends to follow its trajectory.
With Bitcoin prices fluctuating in recent days, the price of Pi Coin continues to be influenced by similar market conditions. The volatility of Bitcoin prices is a critical factor, as it often drives the fluctuations of Pi Coin.
The macro momentum of Pi Coin is dominated by negative investor sentiment, as reflected by the Chaikin Money Flow (CMF) indicator. CMF has been consistently declining, indicating that outflows are overwhelming inflows.
The ongoing decline in investor confidence is contributing to the overall downward momentum. This indicates that investors are pessimistic about Pi Coin, with a significant portion of the market deciding to sell their holdings.
Can Pi Recover?
The price of Pi Coin is currently at $0.340, just 5.54% away from the recent ATL of $0.322. Given the current market conditions, Pi Coin remains under significant pressure, making a further decline likely. A new ATL below the current level of $0.310 may emerge in the near future.
Considering the continuous outflow of capital and the correlation with Bitcoin price volatility, the price trajectory of Pi Coin appears bleak. Prices are expected to continue a downward trend unless investor sentiment changes. A drop below support levels is very likely, pushing prices towards deeper declines.
However, in the rare case that Pi Coin reverses, it will need to ensure a support level of $0.362 to initiate a bullish phase. If the price surpasses this barrier, it could rise to $0.401, negating the current bearish outlook and bringing hope for a price recovery.