Pi Coin stands at a crossroads: A deep fall or a recovery signal is taking shape?

Pi Coin is entering a prolonged sideways phase, reflecting the increasingly clear signs of instability of this altcoin. For the past two weeks, the price has almost “stayed put”, causing investor sentiment to gradually shift towards pessimism.

The weak rally, coupled with a lack of support from the cryptocurrency market in general, is making the outlook for Pi Coin gloomier than ever and pushing this coin closer to the risk of a strong decline.

Pi Coin investors are increasingly skeptical

The “Weighted sentiment” index — a key measure reflecting the general sentiment of investors — is sending a serious warning signal for Pi Coin. Data shows that this index has dropped well below neutral levels, reflecting a growing wave of pessimism within the community. Confidence in the short-term outlook for Pi Coin seems to be weakening rapidly.

Negative psychology often serves as a spark that ignites stronger selling pressure, pushing the already fragile technical structure of Pi Coin into a vulnerable situation. As doubt spreads, many investors tend to withdraw, creating a chain reaction of sell-offs and dragging the price down even further.

Pi Coin Sentiment Index | Source: SantimentOn a technical level, the macro momentum of Pi Coin is still completely leaning towards a downward trend. The relative strength index (RSI) — a tool used by analysts to measure market momentum — is currently maintaining in the negative zone, even frequently falling into an “oversold” state.

Typically, when the RSI reaches the oversold zone, it can signal a technical rebound. However, with Pi Coin, the reversal signal has not yet appeared. The lack of buying pressure indicates that this coin is struggling to find new demand, even as the price has deeply sunk. This trend reflects a prolonged weakness in the macro structure of the asset, indicating that the downside risk has not yet been eliminated.

The RSI index of Pi Coin | Source: TradingView## The price of PI is waiting for a new boost

As of the time of writing, Pi Coin is trading around 0.203 USD, remaining stable above the key support level of 0.200 USD for two consecutive weeks. Despite increasing selling pressure, this coin has maintained its position, reflecting the resilience of buying power to some extent. If the current accumulation zone continues to be preserved, the price of Pi Coin is likely to fluctuate within a narrow range around this level in the short term.

Daily chart of PI/USDT | Source: TradingViewHowever, risks still exist. If pessimistic sentiment spreads and selling pressure prevails, Pi Coin may lose the 0.200 USD mark — thereby sliding towards the support zone of 0.180 USD, approaching the historical low of 0.153 USD. Such a drop could significantly shake the confidence of long-term investors.

On the contrary, in a positive scenario, if Pi Coin rises from the 0.200 USD range, this coin could target the resistance level of 0.229 USD. Breaking through this threshold would not only eliminate the current bearish pattern but also open up opportunities for a promising short-term recovery.

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