Pi Coin is currently facing a significant downtrend that has recently been trading at $0.44 and is shy of an all-time low (ATL) of $0.40. Altcoin has struggled with consistent price drops over the past two months, and the current market situation has not been alleviated much.
An important issue contributing to this bearish trend is that Pi Coin weakens its correlation with Bitcoin, which could affect the outlook for recovery.
Pi Coin continues to lose support
The correlation with Pi Coin with Bitcoin, a key factor in many Altcoins, is steadily decreasing. Currently, the Pi Coin correlation is -0.50. In other words, it is moving in the opposite direction of Bitcoin.
Bitcoin has been experiencing a recent rise, so the Pi Coin counter movement is a source of concern.
The disconnect between PI coins and Bitcoin is becoming a growing problem. The broader market bullish sentiment supported by the price movement of Bitcoin has not been translated into the positive behaviour of PI Coin.
Despite the negative emotions surrounding the PI coin, there are some signs of potential volatility. The squeeze momentum indicator now shows a buildup of bullish momentum, as shown by the black dots on the chart.
This can reduce volatility and often lead to sudden price movements as pressure is released.
However, in the current state of Pi Coin, squeezing can cause sharp downward movements, adding to Altcoin’s ongoing struggle. With bearish momentum still in control, any volatility can push prices even further into ATL.
PI price is a problem
The current $0.44 price for Pi Coin is slightly below AltCoin’s key level of $0.45 resistance. However, in an ongoing downtrend, this resistance has proven difficult to violate.
Altcoin has faced a continuous decline over the past two months and remains susceptible to further drops without significant support.
Pi Coin is only 10% until it reaches a record low of $0.40. Given the current market situation and the negative correlation between Pi Coin with Bitcoin, the chances of Altcoin dropping to this level are increasing.
However, Pi Coin could experience rebound if investors increase purchasing pressure. A successful violation of $0.45 in support will lead to recovery and boost the price to $0.49.
If this occurs, the current downtrend can be invalidated, providing a potential window into the opportunity for Pi Coin to overturn fate.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
