Pi Coin's price fell by about 1.5% today, but its cumulative rise over the past 7 days is 6.1%, still outperforming some mainstream tokens. This month, Pi Coin has also risen by about 15%, while Bitcoin has fallen by nearly 20%. This indicates a strong negative correlation between Pi Coin and Bitcoin, which is one of the reasons it can maintain an upward trend even in a weak market environment.
However, since November 17, the price of Pi Coin has been hovering in a narrow range between $0.24 and $0.22. The chart shows that the price of Pi Coin may break through a narrow fluctuation range of 4-5%, depending on the trends of several signals.
Pi Coin has a strong positive signal: large wallets continue to support its price rise. From November 19 to 24, Pi Coin's price reached a lower high, while the Chaikin Money Flow (CMF) indicator reached a higher high. The CMF indicator measures the accumulation or reduction of large wallets. This is a bullish divergence, indicating that even if the price slows down, funds are still continuously accumulating.
The CMF indicator is currently above the trend line and above the zero axis. As long as the CMF indicator remains above the trend line, the support from large investors will still exist, and the rebound momentum will continue. This is the only clear bullish signal for Pi Coin at present, while the purchasing power of small buyers is relatively weak.
From November 21 to 24, the Pi Coin Money Flow Index (MFI) hit a new low. The MFI tracks the strength of buying on dips by combining price and volume. This is a bearish divergence, indicating weak retail buying.
The trading volume also confirms this risk. The balanced trading volume ( OBV ) indicator is still below its key trend line (close to -1.97 billion). The OBV indicator measures whether new trading volume is entering the market. Before the OBV indicator breaks through this trend line, the participation of Pi Coin is insufficient to support a strong breakout. In addition, falling below the upward trend line may further weaken the volume support.
In short, the support from large investors still exists, but retail buying remains weak. Trading volume is neutral, which may be an indicator of the next price movement of Pi Coin. (BeinCrypto)
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