Pi Coin witnesses strong capital inflows, but an underlying price pattern is gradually emerging

The price of Pi Coin is making efforts to recover in the short term after the recent weakening phase, showing positive signs but still remaining cautious. Although buying pressure has shown signs of improvement, the overall macro picture remains not entirely optimistic.

Technical indicators suggest that the recent upward momentum is mainly corrective, with a risk that Pi Coin may face downward pressure again if market momentum weakens.

Pi Coin investors show optimistic sentiment

On the chart, Pi Coin is currently forming a hidden bearish divergence. From December 19 to January 3, the price made lower highs while the RSI indicator recorded higher highs. This phenomenon indicates that the upward trend lacks solid support from real capital flow.

Hidden bearish divergence often appears during technical rebounds within a downtrend, reflecting short-term optimism but carrying risks if selling pressure remains dominant.

This setup predicts that the main downward trend could resume when demand temporarily weakens, thereby increasing the risk of a price decline for Pi Coin in the near future.

RSI divergence of Pi Coin | Source: TradingView

Macroeconomic indicators provide a more balanced perspective. The Chaikin Money Flow (CMF) indicator has risen above the 0 threshold, reaching its highest level in nearly a month. CMF measures the inflow/outflow of money into the market based on trading volume, serving as a reliable tool to assess investor commitment amid volatility.

The steady growth of CMF indicates accumulation is underway, reflecting genuine investor participation rather than speculative price increases. As a result, Pi Coin has maintained price stability and limited deep corrections, creating a short-term buffer against overall market fluctuations.

CMF of Pi Coin | Source: TradingView

Pi Coin price faces significant challenges

The biggest current challenge for Pi Coin is the resistance zone at $0.214, coinciding with the 23.6% Fibonacci retracement level, which further emphasizes the technical significance of this price point. Multiple rejections at this level indicate strong selling pressure from investors aiming to protect their high capital.

To reverse the downtrend, Pi Coin needs a clear breakout. If the price closes above $0.214, it will confirm a breakout of the trendline, opening opportunities to rise toward the $0.226 zone, or even higher if trading volume and market sentiment continue to improve.

Pi Coin price analysis | Source: TradingView

Conversely, if the upward momentum cannot be maintained, Pi Coin will face the risk of deeper declines. Falling below $0.207 could trigger a sell-off wave, bringing the price back to test the key support zone at $0.199. If buying strength is insufficient to defend this level, the downtrend will likely continue.

Mr. Price