TLDR
- Pi Coin maintains support above $0.15 during the broader market downturn.
- Shrinking sell bars and strong money flow suggest buyers are returning.
- RSI bullish divergence points to weakening downward momentum for Pi Coin.
- Breakout above $0.205 could signal a potential 18% to 44% upside for PI.
Pi Coin (PI) is showing signs of resilience amid the ongoing market turbulence, fueled by US-China tariff tensions. While many altcoins saw steep declines, Pi Coin held strong, staying above critical support levels. The cryptocurrency’s ability to maintain its value during a broad market downturn is raising hopes for a potential rebound. As market conditions stabilize, Pi Coin might be on the verge of a significant recovery.
Pi Coin Holds Strong Despite Market Sell-off
The cryptocurrency market recently faced a major downturn, largely driven by renewed trade tensions between the US and China. Many tokens experienced sharp drops, with Pi Coin (PI) being no exception. In the past week, Pi Coin saw a loss of around 23%.
However, the cryptocurrency displayed surprising resilience, managing to maintain support above the $0.15 level. This stability amidst the market sell-off suggests that Pi Coin might have a stronger foundation than many initially expected.
Since October 7, the coin has shown signs of recovery, rising to nearly $0.20. This price increase signals that investor confidence is returning, albeit cautiously. It indicates that some buyers believe Pi Coin might be positioned for a rebound, despite the challenges faced by the broader cryptocurrency market.
Shifting Market Sentiment and Volume Patterns
A closer look at Pi Coin’s trading patterns reveals key indicators that suggest a shift in market sentiment. Technical analysis using Wyckoff-style volume spread analysis has shown shrinking sell bars, signaling that selling pressure is diminishing. The red sell bars that dominated the chart during the crash have gradually turned yellow, indicating that sellers are losing control.
These yellow bars are becoming progressively smaller, which suggests that the selling momentum is fading. The last time a similar pattern occurred was in early August, just before Pi Coin experienced a 40% rally in a short period. If the trend continues, Pi Coin may be on track for another price surge.
The Chaikin Money Flow (CMF) indicator also supports this view. Despite a brief dip below zero, the CMF is significantly stronger compared to its previous lows in late August. This suggests that institutional buyers or large-scale investors are still accumulating Pi Coin, which could contribute to further price increases in the near future.
Potential for a Price Reversal Based on RSI Divergence
Another important technical indicator that supports the possibility of a Pi Coin price rebound is the bullish divergence in its Relative Strength Index (RSI). Between September 23 and October 10, Pi Coin’s price made lower lows while the RSI made higher lows. This type of divergence often signals that downward momentum is weakening and that a reversal could be imminent.
At the time of writing, Pi Coin was trading at approximately $0.201, just above the 0.236 Fibonacci retracement level. If the price manages to close a 12-hour candle above $0.205, it could confirm the beginning of a breakout. A successful breakout could lead the price toward resistance levels of $0.238, $0.264, and potentially $0.290, marking gains of 18%, 31%, and 44% from the current price, respectively.
Key Support and Resistance Levels to Watch
While the technical indicators suggest a potential recovery, it’s important to note that a drop below $0.184 would invalidate this bullish setup. If Pi Coin falls below this level, it could struggle to regain its previous momentum and may even drop toward the $0.153 range, depending on broader market conditions.
In summary, Pi Coin’s current market performance suggests that it could be positioned for a rebound. The fading sell-off pressure, steady money flow, and positive technical indicators provide a solid foundation for potential gains. However, the cryptocurrency market remains volatile, and investors should closely monitor key support and resistance levels to gauge the coin’s next move.
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