Pi Coin has been witnessing increased volatility lately, with the price fluctuating amid low growth over the past few days.
Although there is some skepticism about the limited rally in altcoins, improving investor sentiment and technical signals suggest a reversal is likely.
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Pi coin may rebound
Pi Coin’s Relative Strength Index (RSI) is currently in the oversold zone, a level that often indicates seller exhaustion. Historically, such dips have marked important turning points for cryptocurrencies.
Just last week, a similar situation preceded a notable pullback, suggesting that selling pressure may soon give way to accumulation.
Investors often interpret oversold conditions as an opportunity to enter the market at a discount. Stronger accumulation could change Pi Coin’s momentum as buyers look to take advantage of lower valuations.
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The Chaikin Money Flow (CMF) indicator has shown volatility in recent trading, but remains in positive territory above the zero line. This means that capital inflows continue to outpace outflows, which is a positive sign for market stability. Even if there is a temporary downturn, continued inflows indicate that investor confidence in Pi Coin is not completely destroyed.
Although momentum has weakened slightly, the overall liquidity structure supports a steady recovery. If CMF maintains a position above zero, it could provide the basis for new buying activity.
PI price remains above key support
Pi Coin is trading at $0.205, firmly above the $0.200 support level, which has served as an important foundation for past rebounds. This level contributed to the altcoin’s rally last week, and further bullish momentum could lead to a similar rebound.
If this happens, Pi Coin could rise towards the $0.229 resistance level, resulting in a potential breakout that could pave the way to $0.256. Achieving this move will require solid investor support and favorable market cues.
However, if the overall market turns bearish, Pi Coin could lose the $0.200 support. Therefore, the token could fall to $0.180 or even an all-time low of $0.153, invalidating the bullish theory.
