Pi Coin is facing a persistent downward trend, which has pushed the altcoin back to its lowest historical value (ATL).
Despite investors' attempts to change this trajectory, market conditions remain unfavorable. This ongoing downward trend has generated uncertainties about the future direction of the Pi Coin price.
Pi Coin investors are hopeful
The Relative Strength Index (RSI) of PI has been signaling bearish trends in recent weeks. Although the RSI briefly surpassed the neutral mark during this period, it has consistently failed to maintain itself above it. This pattern was observed again this week, reinforcing the idea that the altcoin is facing ongoing bearish pressure.
Furthermore, the overall market sentiment remains pessimistic towards Pi Coin. Despite occasional attempts at a rally, the persistent failure to maintain upward momentum indicates that the altcoin may struggle to break free from its downward trend.
Pi Coin RSI. Source: TradingView
Despite the overall bearish sentiment in the market, the Chaikin Money Flow (CMF) of Pi Coin has shown a positive inclination. The CMF indicates an increase in inflows into PI, pointing to a steady rise in investor interest, although with fluctuations in commitment.
Although technical indicators show mixed signals, the increase in inflows is a key factor preventing PI from falling to its ATL. If these inflows continue, they may provide sufficient support to keep the price of PI above its recent lows.
This may prevent further sharp declines, helping to stabilize the price of the altcoin in the short term.
Pi Coin CMF. Source: TradingView
PI price seeks recovery
Currently, Pi Coin is trading at $0.383, after failing to break a crucial resistance at $0.440. This resulted in a 12% drop over the past three days, solidifying the ongoing three-month downward trend. The inability to break key resistance levels has left the altcoin vulnerable to further losses.
The price of Pi Network is now only 16% away from its ATL of $0.322, and the mixed sentiment from technical indicators suggests it may not reach that level in the immediate future. The altcoin is likely to attempt a bounce from its current support at $0.362.
Pi Network Price Analysis. Source: TradingView
However, if overall market conditions worsen or investor sentiment becomes more pessimistic, a pullback may be imminent. This could lead Pi Coin to break its support and fall to $0.322, invalidating the current neutral-upward outlook. In that case, the coin could form a new ATL, pushing its price further down and intensifying the downward trend.
The article Increasing inflows may break Pi Coin's downward trend was first seen on BeInCrypto Brazil.