Pi Coin has been facing a significant downtrend, recently trading at $0.44, just shy of its all-time low (ATL) of $0.40. The altcoin has struggled with consistent price declines over the past two months, and the current market conditions are not offering much relief.
A key issue contributing to this bearish trend is Pi Coin’s weakening correlation with Bitcoin, which could impact its recovery prospects.
Pi Coin Continues To Lose Support
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Pi Coin’s correlation with Bitcoin, a significant factor for many altcoins, has been steadily declining. Currently, Pi Coin’s correlation stands at -0.50, meaning it is moving in the opposite direction of Bitcoin.
As Bitcoin has experienced an uptick in recent times, Pi Coin’s inverse movement is cause for concern.
The disconnect between Pi Coin and Bitcoin is becoming a growing issue. The broader market’s bullish sentiment, fueled by Bitcoin’s price movements, hasn’t translated into positive action for Pi Coin.
Despite the negative sentiment surrounding Pi Coin, there are some signs of potential volatility. The Squeeze Momentum Indicator currently shows a buildup of bullish momentum, as indicated by the black dots on the chart.
This could lead to a volatility squeeze, which is often followed by sudden price movements once the pressure is released.
However, in Pi Coin’s current state, a squeeze could result in a sharp downward move, adding to the altcoin’s ongoing struggles. With bearish momentum continuing to dominate, any volatility could push the price further toward its ATL.
PI Price Is In Trouble
Pi Coin’s current price of $0.44 is holding just below the resistance of $0.45, a critical level for the altcoin. However, with the ongoing downtrend, this resistance is proving difficult to breach.
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The altcoin has faced continuous declines for the past two months, and without significant support, it remains susceptible to further drops.
Pi Coin is only 10% away from reaching its all-time low of $0.40. Given the current market conditions and Pi Coin’s negative correlation with Bitcoin, the chances of the altcoin falling to this level are growing.
However, if investors increase buying pressure, Pi Coin may experience a rebound. A successful breach of $0.45 as support could lead to a recovery, pushing the price to $0.49.
If this happens, the current downtrend could be invalidated, providing a potential window of opportunity for Pi Coin to reverse its fortunes.
source : https://beincrypto.com