Is Pi Coin Retail Trying to Catch a ‘Falling Knife’ as New Low Risks Surface?
Pi Coin worth has been beneath heavy stress, and the selloff has not paused but. The token is down 5.6% over the previous 24 hours and 11.5% over the past seven days. Since late November, Pi Coin has dropped roughly 32%, inserting it firmly among the many weakest performers within the present market correction.
With worth nonetheless sliding, a key query is rising. Are Pi Coin retail merchants making an attempt to catch a dip, which more and more appears to be like like a falling knife?
Chart Confirms a Falling Knife as Bears Keep Control
A falling knife describes a market the place the worth retains making decrease lows with no clear base. The Pi Coin worth correction of 32% in two weeks suits that definition clearly on the day by day chart.
The Pi Coin price is buying and selling beneath all main exponential transferring averages (EMAs). EMAs are pattern indicators that present the place worth momentum sits. When the worth stays beneath them, the pattern stays bearish, which means that the falling knife sample may proceed. On Pi Coin’s chart, each rally try has failed beneath these ranges. For now, the PI worth would want to reclaim no less than one EMA line (20-day first) to goal a rebound.
The Bull Bear Power (BBP) indicator reinforces this view. BBP measures whether or not consumers or sellers management momentum. Since December 1, BBP has remained deep in destructive territory and continues to develop decrease. That alerts bears are nonetheless in full management, with no sustained pushback from consumers.
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As lengthy as Pi Coin trades beneath its EMAs and BBP stays destructive, the broader construction stays a falling knife, not a dip.
Short-Term Buyers Step In, however Big Money Still Sells
Zooming into the 12-hour chart, a totally different dynamic seems. While the PI price continues making decrease lows between December 11 and December 15, the Money Flow Index (MFI) has shaped a increased low.
MFI tracks shopping for and promoting stress utilizing each worth and quantity. Rising MFI whereas worth falls usually suggests dip-buying. In this case, it doubtless displays retail or short-term merchants stepping in.
However, larger cash tells a totally different story. The Chaikin Money Flow (CMF) indicator, which tracks large capital inflows and outflows, stays beneath the zero line. CMF beneath zero means capital continues to be leaving the asset total.
Even although CMF has proven gentle divergence, it has not reclaimed constructive territory. That suggests massive holders are nonetheless cautious and dumped PI as the correction intensified. In easy phrases, retail shopping for is seen, however web capital move stays destructive.
This mismatch is typical throughout falling knife phases, as retail is usually recognized to try to catch market lows.
Key Pi Coin Price Levels That Decide Everything
Pi Coin price now sits close to a essential zone. $0.187 is the instant help holding Pi Coin from sliding additional. If this stage breaks, the construction worsens shortly.
A clear transfer beneath $0.174 (present all-time low per CoinGecko) would doubtless speed up draw back stress. Based on trend-based Fibonacci extensions, the subsequent main draw back goal sits close to $0.130, which might mark a recent all-time low.
For any significant rebound to develop, the Pi Coin worth should reclaim $0.213. A 12-hour shut above that stage would ease bearish stress and problem the falling knife setup. Until then, rebounds stay fragile.
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