Pi Coin Price Bounce Could Be a Trapdoor to a New All-Time Low — Here’s Why
Pi Coin (PI) is exhibiting some life after a robust stretch. At the time of writing, the Pi Coin worth sits close to $0.36, up virtually 3% previously 24 hours and about 4% over the previous week. The transfer would possibly look encouraging for merchants hoping the token has turned a nook.
But warning is warranted. A better have a look at the charts suggests the value surge might not be what it appears. If present alerts play out, this bounce may develop into a trapdoor to a new all-time low at $0.31.
Why the Bounce Looks Like a Trap
The first clue comes from the Money Flow Index (MFI), which tracks each worth and buying and selling volumes to present shopping for or promoting stress. MFI has risen sharply alongside this bounce, pointing to energetic dip-buying. On the floor, this appears wholesome — it suggests merchants are stepping in.
But the Chaikin Money Flow (CMF) tells one other story by curling down and staying within the deep destructive territory. CMF measures whether or not cash is flowing into or out of the asset. Right now, CMF sits at -0.11, exhibiting there are not any significant inflows from larger gamers however outflows.
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That means the latest Pi Coin price uptick is retail-driven, with out the backing of bigger cash. This mismatch between MFI and CMF usually alerts weak spot.
Zooming out, the every day RSI (Relative Strength Index) makes issues even clearer.
RSI compares the scale of latest positive factors to latest losses. In this case, the Pi Coin price has made decrease highs, however RSI has made increased highs. That’s a hidden bearish divergence, which usually factors to persevering with downtrends. Put collectively, the MFI-CMF break up and RSI divergence affirm that the bounce could also be nothing greater than a entice.
Pi Coin Price Chart Presents the Trap With Key Levels
The 4-hour chart supplies the ultimate piece of the puzzle. The Pi Coin price seems to have fashioned a head-and-shoulders sample, a traditional bearish setup. The proper shoulder peak appears full now with the bounce, with the neckline sitting round $0.33. If worth breaks under that neckline, the measured goal factors to a drop towards $0.31 — a new all-time low.
That’s why this bounce appears dangerous. While retail merchants are fueling the short-term rise, broader indicators and chart buildings are pointing down.
There is a method to invalidate this bearish setup: Pi Coin should reclaim $0.37 with a robust 4-hour shut. That would break above the pinnacle space of the bearish sample, restoring momentum for the bulls. Until that occurs, the bounce is best seen as a trapdoor that might ship the PI worth decrease.
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