Pi Coin's Journey to All-Time Low: What's Driving the Price Down?

Pi Coin has recently faced difficult price fluctuations, leading to the formation of a new All-Time-Low (ATL) at the beginning of last week.

Despite the continuing downward trend, Pi Coin remains close to its new ATL, as investor sentiment continues to deteriorate, reflecting the lack of optimism in the market.

Pi Coin Holders Are Choosing Not to Hold

The current correlation between Pi Coin and Bitcoin is 0.93, showing a strong connection between these two assets. When Bitcoin experiences volatility and uncertainty, Pi Coin tends to follow its trajectory.

With Bitcoin's price fluctuating in recent days, Pi Coin's price remains easily influenced by similar market conditions. The uncertainty about Bitcoin's price is a crucial factor, as it often drives Pi Coin's movements.

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Pi Coin's macro momentum is dominated by negative investor sentiment, as shown by the Chaikin Money Flow (CMF) indicator. The CMF has continuously declined, indicating that outgoing cash flow is overwhelming incoming cash flow.

The continuous decline in investor confidence is contributing to the overall negative momentum. This suggests that investors are pessimistic about Pi Coin, with a large portion of the market choosing to sell their assets.

Can Pi Coin's Price Recover?

The current Pi Coin price is $0.340, only 5.54% away from its recent ATL of $0.322. Under current market conditions, Pi Coin is experiencing significant pressure, making it likely for the price to continue declining. A new ATL below the current $0.310 could occur in the near future.

With continuous outgoing cash flow and correlation with Bitcoin's price volatility, Pi Coin's price trajectory appears gloomy. The price is expected to maintain a downward trend unless there is a change in investor sentiment. It is highly likely that the price will drop through support levels, pushing it towards further losses.

However, in an uncertain scenario where Pi Coin experiences a reversal, it needs to maintain $0.362 as a support floor to initiate a price increase. If the price breaks through this barrier, it could rise to $0.401, invalidating the current price decline prospects and bringing hope for price recovery.