The 11% Pi Coin Price Recovery Could Be Setting Up a New Low — Here Is How?

Pi Coin worth has rebounded almost 11% since its February 23 low, climbing again to the $0.174 zone. This form of restoration normally alerts energy and attracts recent patrons anticipating a bigger rally.

But this rebound is probably not bullish in any respect. Instead, it could be forming the ultimate section of a bearish construction. At the identical time, retail merchants are aggressively shopping for the dip, at the same time as deeper indicators present the restoration is weakening. This creates a state of affairs the place the rebound itself might enhance the danger of a recent drop, courtesy of a technical sample.

Pi Coin Rebound Is Happening Inside a Bearish Pattern, Yet Retail Buys Anyway

Pi Coin’s rebound is presently forming an inverted cup-and-handle sample, a bearish construction that usually results in worth declines. The present worth rise represents the deal with portion of this sample. Handle rebounds usually seem robust, however they sometimes fail beneath resistance and result in breakdowns.

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At the identical time, cash and quantity indicators present a harmful contradiction.

The On-Balance Volume (OBV), which tracks shopping for quantity, has been rising steadily since February 23. This exhibits that merchants are actively shopping for the dip and supporting the rebound. A push above the descending trendline might lengthen the harmful rebound additional, whereas preserving the entrants .

The Money Flow Index (MFI), which measures shopping for strain utilizing worth and quantity, confirms this habits. Between February 16 and February 23, Pi Coin price continued falling and shaped decrease lows. But throughout the identical interval, MFI shaped increased lows. This creates a bullish divergence in MFI.

A bullish divergence occurs when shopping for strain will increase even whereas the worth falls. The OBV-MFI rise confirms aggressive dip-buying. But that is precisely what makes the state of affairs harmful. Retail shopping for is presumably growing, however the PI worth continues to be trapped inside a bearish construction. This creates the circumstances for a potential lure.

Momentum Is Rising, But Price Strength Remains Weak

The weak spot turns into clearer when taking a look at momentum energy in comparison with worth construction. Between January 27 and February 25, the Pi Coin worth shaped a decrease high. This means the rebound remained weaker than the earlier rally and confirmed that the broader development continues to be down.

At the identical time, the Relative Strength Index (RSI), which measures momentum energy, shaped a increased high. This creates a hidden bearish divergence.

A hidden bearish divergence occurs when momentum rises, however the worth fails to interrupt resistance. This normally alerts that patrons are dropping management, and the rebound could quickly reverse into a pullback, extending the broader downtrend. When this occurs inside a bearish chart sample, the chance of a breakdown will increase

This confirms that though the Pi Coin worth is rising, sellers may nonetheless be in management. But if retail is shopping for, who’s promoting?

Larger Investors Are Quietly Selling the Pi Network Token

The contradiction turns into much more important when analyzing large-scale monetary exercise. The Chaikin Money Flow (CMF), which tracks whether or not cash is getting into or leaving an asset, has been falling steadily and stays beneath zero. This exhibits that general capital continues to be leaving Pi Coin.

This creates one other bearish divergence. The Pi Coin worth trended increased between February 11 and February 24, whereas the CMF, the technical proxy for big cash, trended decrease.

This strongly means that bigger buyers are seemingly promoting into the rebound whereas retail merchants proceed shopping for. This kind of habits usually seems earlier than breakdowns. Retail shopping for helps push costs increased quickly, however with out help from bigger buyers, the transfer turns into unsustainable. This explains why Pi Coin’s rebound could also be deceptive and will even be a lure.

Pi Coin Price Levels Now Decide Whether Recovery Fails or Survives

Pi Coin is now approaching essentially the most crucial stage of this construction. If Pi Coin falls beneath $0.161, the bearish inverted cup and deal with breakdown would seemingly affirm. This might push Pi Coin towards $0.130 (present low) and doubtlessly as little as $0.122, which might mark a new low.

This would affirm that the 11% rebound was solely a non permanent restoration inside a bigger downtrend. However, restoration continues to be potential if patrons regain management.

A transfer above $0.173 would present early energy returning. A break above $0.193 would weaken the bearish sample considerably. A transfer above $0.207 would invalidate the bearish construction utterly.

Until these resistance ranges are reclaimed, the danger stays that Pi Coin’s rebound is just not the beginning of a restoration. Instead, it could be the setup for the subsequent decline.

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