Pi Coin has experienced a steady performance throughout November, contrasting sharply with the struggles faced by larger cryptocurrencies. However, this trend shifted dramatically this week, with the token witnessing a decline of nearly 10% over the last seven days and more than 4% in the past 24 hours. A critical move beneath an essential support level has confirmed a distinct pattern break on the daily chart, leading many analysts to label this situation as a “doomsday” risk, as continued selling could push the price to an all-time low.
The breakdown of the Pi Coin price has occurred beneath the neckline at approximately $0.219, fulfilling a classic head and shoulders pattern which typically indicates a bearish reversal. The standard downside projection derived from the distance between the neckline and the head suggests a potential fall of roughly 22.8%, which would bring the price close to $0.169. This is significant because the current all-time low for Pi Coin stands around $0.172, according to CoinGecko.
Despite the strong selling pressure, indicators suggest that buyer interest may still be present. One notable metric is the Chaikin Money Flow (CMF), which monitors the influx and outflow of substantial capital. Recent data shows a divergence; while the price recorded lower lows between December 9 and December 11, the CMF has indicated upward movement. This divergence could imply that larger buyers are starting to buffer the dips in price.
Moreover, the Relative Strength Index (RSI), which assesses buying and selling momentum, has also shown signs of hidden bullish divergence. Between November 4 and December 10, the price of Pi Coin established higher lows, while the RSI demonstrated lower lows. This suggests a reduction in selling pressure, hinting at potential recovery.
Currently, Pi Coin is trading near $0.208. The critical support level to watch is $0.192; a fall below this threshold could lead to a decline towards the target of $0.169, solidifying a new low on the pricing chart. Conversely, for a recovery trajectory, Pi Coin needs to reclaim $0.233, which is situated above the right shoulder of the pattern. A comprehensive trend reversal would only materialize if the price surpasses the $0.284 mark, which is above the head of the pattern.
At this juncture, Pi Coin finds itself caught between significant bearish pressure and early signs of support. While the recent breakdown raises concerns of a new low, the observed divergences indicate that buyers remain active. The upcoming movements in price will hinge on whether it can maintain the $0.192 support or succumb to the prevailing downtrend.
