Recently, Pi Coin faced difficult price volatility, peaking at its all-time low (ATL) earlier last week. Despite the ongoing decline, Pi Coin is on the verge of reaching its all-time low, with investor confidence continuing to wane, reflecting a lack of optimism in the market.
Pi holders choose not to hold it
The correlation coefficient between Pi Coin and Bitcoin is currently 0.93, indicating a strong relationship between the two. When Bitcoin experiences volatility and instability, Pi Coin tends to follow its path.
With the recent price volatility of Bitcoin, the price of Pi Coin is still affected by similar market conditions. Bitcoin price volatility is an important factor, as it often influences Pi Coin's fluctuations.
The relationship between Pi and Bitcoin. Source: TradingView
The overall market momentum for Pi Coin is dominated by negative sentiment among investors, as shown by the Chaikin Money Flow (CMF) index. The Chaikin Money Flow index has seen a steady decline, indicating that outflows are outweighing inflows.
The ongoing decline in investor confidence contributes to the overall downturn. This indicates pessimism among investors regarding Pi Coin, as a significant portion of the market has decided to sell their investments.
Pi Coin CMF. Source: TradingView
Can Pi be recovered?
The current price of Pi Coin is at $0.340, just 5.54% away from the recent level of $0.322 recorded in the ATL index. Under the current market conditions, Pi Coin remains under significant pressure, which may lead to continued price declines. A new level for the ATL index lower than the current level of $0.310 is likely to appear in the near future.
Given the ongoing outflows and their correlation with Bitcoin price movements, the price trajectory of Pi Coin looks bleak. The price is expected to continue its downward trend unless investor sentiment changes. It is highly likely that the price will drop below support levels, leading it towards deeper declines.
Pi Coin price analysis. Source: TradingView
However, in the event of a reversal in the price of Pi Coin, which is unlikely, it would need to secure support at $0.362 to initiate an upward movement. If the price breaks this barrier, it could rise to $0.401, refuting current bearish expectations and providing hope for a price recovery.