Pi Coin has seen significant price movement recently, experiencing a notable drawdown that brought it close to crucial support levels.
Despite this decline, the altcoin managed to hold its ground above a potential all-time low (ATL). Inflows from investors are now providing the much-needed momentum for Pi Coin’s recovery.
Pi Network Is Gaining Traction
The current market sentiment for Pi Coin shows some positive signs. The Moving Average Convergence Divergence (MACD) indicator reveals that the bearish momentum has yet to gain strong traction.
A recent bullish crossover, accompanied by green bars on the histogram, suggests that Pi Coin still has the potential to recover. This is a crucial development, as it indicates that the altcoin could regain upward momentum, potentially avoiding a drop to its ATL.
The macro momentum for Pi Coin is also showing signs of improvement, as indicated by the Chaikin Money Flow (CMF). The CMF has seen a sharp uptick, signaling an increase in inflows into the altcoin.
While the indicator is still below the zero line, the rising trend suggests that Pi Coin is regaining traction. This could be a critical factor in helping the altcoin maintain its price above the support levels and prevent it from falling to new lows.
Moreover, the growing investor participation in Pi Coin is a positive indicator of its recovery potential. As more investors show interest in the token, it could create a stable foundation for future price growth.
This influx of capital could also support the altcoin in breaking through resistance levels, leading to a potential price rebound.
Pi Coin Price Finds Support
Pi Coin’s price has decreased by 9.7% in the last four days, with the altcoin trading at $0.442 at the time of writing. It has recently approached the local support level of $0.440, which has been holding steady.
A key factor for Pi Coin’s recovery will be its ability to bounce off the $0.440 support and secure $0.450 as a new level of support. This could set the stage for a price rebound, pushing Pi Coin towards $0.493 and helping it regain the losses incurred over the past days.
However, if investor sentiment shifts from accumulation to selling, Pi Coin may face further downside risk. A breakdown below $0.440 could see the altcoin testing the all-time low of $0.400.
Pi Coin is currently just 9.6% away from this critical level, and if selling pressure mounts, it could reach the ATL once again.
