Pi Coin's (PI) recent upward momentum, which saw it gain almost 18% month-on-month, has started to cool, marked by a 5% pullback in the past 24 hours. The strong buying activity is meeting short-term resistance as key technical indicators signal a saturation of capital inflows.
Technical Indicators Signaling Saturation
The slowdown is primarily driven by fading capital support, despite some macro resilience:
- •Chaikin Money Flow (CMF) Warning: The CMF, which tracks capital inflows, is slipping after touching the 0.15 level. This historically acts as a saturation point for Pi Coin, signaling weakening money flow and increasing short-term bearish pressure. A renewed drop in capital inflows could pull the price lower in the coming sessions.
- •Underlying Resilience (RSI): Despite the CMF slip, the Relative Strength Index (RSI) remains in bullish territory (above the neutral line). This shows underlying buying interest and structural resilience, helping Pi Coin sustain strength even as broader market sentiment is weak.
- •Negative Bitcoin Correlation: Pi Coin’s price has maintained strength because its correlation with Bitcoin is negative, allowing it to avoid following the typical market downtrend.
Key Resistance and Support Levels
The price is currently consolidating just below a critical resistance point:
- •Key Resistance Level: Pi Coin is trading at $0.241, sitting just below the resistance level of $0.246.
- •Downside Risk: If buying strength continues to fade, Pi Coin could slip below the immediate support at $0.234, leading to a period of consolidation or further pullback.
- •Bullish Invalidation: For the bearish outlook to be invalidated, capital inflows must strengthen enough to push the price decisively above the $0.246 resistance. A successful move could lift the price to $0.250 and potentially $0.260.
Final Conclusion
Pi Coin's strong recent rally is likely pausing, signaled by the CMF saturation near 0.15, which points to fading short-term momentum. Price action suggests a period of consolidation near the $0.246 resistance level is probable. The underlying strength (bullish RSI and negative correlation with BTC) should help prevent a full reversal, but a substantial upward move requires a renewed surge in capital inflows to breach the $0.246 ceiling.
Important Disclaimer
This analysis is for informational and educational purposes only and is based on technical analysis and market data. It is not financial advice, nor should it be construed as a recommendation to buy, sell, or hold any security or cryptocurrency. The cryptocurrency market is highly speculative, volatile, and subject to external factors. Readers must conduct their own comprehensive research (DYOR) and consult with a qualified financial advisor before making any investment decisions.