Pi Coin continues to face significant challenges as it struggles to break free from a persistent downtrend, notably failing to breach the crucial $0.360 resistance level once again. For over a month, the altcoin has remained in a subdued state, with multiple recovery attempts stalling and leaving investors anxious about its future trajectory.
A key factor contributing to Pi Coin’s woes is its increasing correlation with Bitcoin, currently sitting at 0.74. This relationship has been strengthening recently, and while such correlations can sometimes encourage price growth, in this case, they pose significant risks for Pi Coin. The ongoing volatility of Bitcoin, which has struggled to maintain upward momentum, could further drag Pi Coin down if its performance continues to reflect Bitcoin’s trends.
As Bitcoin’s instability becomes apparent, Pi Coin is poised for greater potential losses. The broader cryptocurrency market is also currently facing difficulties, making the landscape even more treacherous for altcoins trying to establish footholds.
From a technical analysis standpoint, momentum indicators reveal concerning signs for Pi Coin. The relative strength index (RSI) has fallen below the neutral 50.0 mark, indicating bearish territory. This downward movement is a clear signal that selling pressure is intensifying, thereby limiting Pi Coin’s chances for recovery unless favorable market conditions unexpectedly arise.
Should Pi Coin remain below the 50.0 threshold, it could signify declining investor confidence. Continuing bearish momentum might lead to further declines, especially if negative external market factors, particularly Bitcoin’s performance, exacerbate the situation.
At present, Pi Coin is trading at $0.345, barely holding above its support level of $0.340. After another rejection at the $0.360 resistance, Pi Coin has witnessed a 3.5% decrease. This repeated failure to overcome the $0.360 barrier highlights a concerning lack of buyer strength in the market. If the current market conditions worsen and Bitcoin remains weak, Pi Coin risks slipping below the $0.340 support, potentially falling to $0.334, and possibly nearing its all-time low of $0.322.
On a more optimistic note, if Pi Coin manages to bounce off the $0.340 support and successfully breaches the $0.360 resistance, it could invalidate the bearish outlook. Successfully flipping this resistance into support could pave the way for a recovery towards $0.381, rekindling some hope among investors.
As the situation develops, market participants are watching closely to see whether Pi Coin can turn things around or if it will succumb to the downward pressures currently dominating the crypto landscape.
