Pi Coin Price: Is a Reversal on the Horizon?
Pi Coin Shows Signs of Potential Reversal
While much of the crypto market focuses on assets reaching all-time highs, Pi Coin (PI) has been trending in the opposite direction, consistently hitting new lows. The token is down 1.2% in the last 24 hours and nearly 25% over the past month, with the most recent all-time low recorded just yesterday.
However, some technical signals are hinting at a possible short-term reversal for the PI price. A key divergence on the chart, combined with decreasing sell pressure and growing positive sentiment, could mark a turning point.
Bears Losing Momentum?
Sellers have maintained control over PI's trend for several weeks. The Bull-Bear Power (BBP) indicator, which tracks the strength of buyers versus sellers, is showing signs of a shift. A fading bearish trend often indicates that sellers are losing steam.
The BBP has been rising since August 1st, moving from a deeply negative zone to a less aggressive level, similar to the pattern observed between July 15th and 21st. This earlier shift preceded a price increase from $0.45 to $0.52.
The Bull-Bear Power indicator measures the difference between the highest price and a short-term moving average, revealing which group, bulls or bears, currently dominates.
Reinforcing this is PI's social dominance, which tracks the volume of conversations about the coin. From August 1st to 3rd, PI's social dominance showed a three-day streak of higher highs, mirroring the pattern from July 15th to 23rd. This prior period coincided with a local price bottom and the subsequent rise to $0.52.
RSI Divergence Signals Potential Bottom
The Relative Strength Index (RSI) currently stands at 23.37, indicating oversold conditions. The pattern forming on the RSI is also significant.
PI's price recently formed a higher low, while the RSI created a lower low. This setup is a hidden bullish divergence, often seen before local bottoms.
While a falling RSI might initially appear bearish, the price's failure to follow it lower suggests that downside momentum is weakening. This signals that selling pressure is failing to push the price further down, which could be a bottoming signal.
This RSI divergence alone doesn't guarantee a bounce, especially while PI Coin's price is declining. However, it serves as an early indicator of a potential shift.
RSI is a momentum oscillator that measures the speed and change of price movements. Readings below 30 often indicate an oversold asset with reversal potential.
Key Price Levels to Watch
The Pi Coin price is currently trading around $0.35. Based on Fibonacci retracement levels from the July 22nd high of $0.52 to the July 31st low of $0.32, the next major resistance lies at $0.36, followed by $0.39, and $0.42.
A daily close above $0.39 would signal that bulls are regaining control. However, if PI breaks below $0.32, the bullish divergence setup would be invalidated, and the downtrend could continue.
While Pi Coin's chart may still appear weak, these technical indicators offer the first signs in weeks that its trajectory could change. This shift will require confirmation through improved RSI readings and a further decrease in bearish pressure.