PI Coin Faces Continued Pressure as Selling Dominates Market
- PI has fallen 72% from its peak in February due to ongoing pessimism.
- Technical indicators suggest distribution phase continues for token holders.
- Price could revisit $0.40 all-time low if current trend persists.
The PI coin continues to experience significant downward pressure, shedding 72% of its value since February 26 as bearish sentiment dominates trading activity. Technical analysis suggests the token may be entering a new phase of decline as selling pressure overwhelms buying interest.
Currently trading at $0.63, PI has fallen well below the dynamic support level of $0.93 indicated by its Super Trend indicator, signaling a continuation of the bearish trend that has persisted for nearly two months.
An examination of the PI/USD daily chart reveals that token holders remain committed to distribution rather than accumulation. The Balance of Power (BoP) indicator, which measures the relationship between buying and selling pressure, currently shows a negative reading, confirming that sellers maintain control of price action.
The BoP indicator compares closing prices to trading ranges within specific periods to determine market control. When this metric turns negative, as currently observed with PI, it signals that sellers are dominating the market and exerting downward pressure on the assets price.
Several factors back PI coins bearish look
Further supporting this bearish outlook is PIs Chaikin Money Flow (CMF) indicator, which currently registers -0.12, placing it below the central line. This technical metric measures the buying and selling pressure for an asset, with negative readings indicating stronger selling than buying activity.
The adverse feeling is strengthened and the downward trend seen in recent weeks is validated by the negative CMF value, which verifies that PI traders are actively distributing tokens rather than collecting them.
The Super Trend indicator provides additional confirmation of PIs bearish positioning. This technical tool identifies market direction by placing a line above or below the price chart based on volatility measurements. The indicator indicates a negative trend and raises the possibility of future drops when PI is trading below the Super Trend line.
If the current selling pressure intensifies, PI could revisit its all-time low of $0.40, representing a potential additional 36.5% decline from current levels. Such a move would complete a nearly complete retracement of the tokens previous bullish cycle.
However, not all scenarios point to continued decline. The price of the token may rise over the immediate resistance level of $0.86, which might lead to a surge above the $1.01 level, if demand returns to the PI market. This would represent a significant 60% increase from current prices and signal a potential trend reversal.
Read more: https://thenewscrypto.com/pi-coin-faces-continued-pressure-as-selling-dominates-market/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
