Pi Coin (PI) is still up about 9% over the past month, trading near $0.226, but the short-term chart is flashing multiple bearish signals, suggesting the recent rebound is running out of momentum. Unless buyers step in immediately, a pullback is highly likely.
Reasons for Weakness: The Three Red Flags
The price weakness is confirmed by three technical indicators showing sellers are taking control:
- ā¢Bearish Engulfing Pattern: A bearish engulfing pattern has formed on the daily chart. This candlestick formation signals that sellers have regained control, as the red candle fully covered the previous green candle. Historically, this pattern has preceded sharp drops in Pi Coin, sometimes by as much as 20%.
- ā¢Volume Breakdown (OBV): The On-Balance Volume (OBV) indicator, which tracks buying pressure, has broken below its rising trend line. This is a critical signal that real buying volume is weakening. A drop below ā1.36 billion on OBV would confirm that sellers have completely taken over.
- ā¢Hidden Bearish Divergence (RSI): The Relative Strength Index (RSI) flashed a hidden bearish divergence (price made a lower high while RSI made a higher high). This pattern typically suggests that the broader downtrend is still in control and warns of the next potential move down.
Critical Price Levels and Targets
The immediate outlook is defined by the failure to clear resistance and the key support levels that must hold:
- ā¢Critical Support (Must Hold): The first key level PI must protect is $0.219. Holding this keeps the short-term bounce possibility alive. Losing this level would open the path toward $0.209, which served as the base for the last rebound.
- ā¢Upside Invalidation: To invalidate the bearish signals and flip the short-term trend back to positive, buyers must reclaim $0.230 and then break the higher resistance at $0.236 with strong volume.
Final Conclusion
Pi Coin's monthly gain is masking significant structural weakness. The combination of the bearish engulfing pattern, the breakdown in volume (OBV), and the bearish momentum divergence (RSI) strongly suggests that the recent bounce is concluding and a pullback is imminent. Traders should exercise caution, as the price is likely to test the support at $0.219 and potentially $0.209 unless a sudden surge of buying volume clears the resistance at $0.236.
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.