Pi Coin's journey has been nothing short of turbulent since its highly-anticipated mainnet launch just a week ago. In a shocking turn of events, the altcoin experienced a staggering 99% crash in value within a mere four days post-launch.
Although there have been fleeting moments of recovery, the damage inflicted remains severe, leaving Pi Coin struggling to reclaim its former glory.
Challenges Persist for Pi Coin
The Chaikin Money Flow (CMF) indicator has been a rollercoaster ride for Pi Coin's market sentiment in recent days. Following the mainnet debut, a wave of selling pressure led to a dip in the CMF. However, opportunistic investors seized the opportunity to scoop up tokens at bargain prices, causing a sudden surge in inflows.
While this spike in the indicator is a positive sign, a true bullish outlook hinges on the CMF crossing the zero line, indicating sustained positive momentum and bolstered investor confidence in Pi Coin's recovery.
Although signs of recovery are visible, Pi Coin's journey back to stability is still in its nascent stages. While some investors show faith in the altcoin's potential through increased inflows, the failure of the indicator to consistently surpass the zero line suggests that a solid bullish trend is yet to materialize. To build momentum and instill confidence among investors, Pi Coin must witness continued buying pressure propelling its price upwards.
Facing Macro Pressures
Pi Coin is not immune to external headwinds, as a bearish crossover looms large on the horizon. The Moving Average Convergence Divergence (MACD) has signaled a bearish crossover in the past 36 hours, typically indicating further downward price movement.
Amidst these broader market challenges, Pi Coin's price trajectory reflects the prevailing trends. However, a sustained recovery and an upswing in investor interest could potentially pave the way for a bullish crossover. This could mark a turnaround confirmed by the histogram bars flipping above the neutral line.
Recovery Roadblocks Ahead
Presently, Pi Coin is trading at $1.56, following a weekend bounce that saw a remarkable 116% surge. Despite this fleeting uptick, bearish indicators suggest the possibility of further downturn. While the altcoin touched an all-time high (ATH) of $1.72, it now rests closer to the $1.43 support level.
Given the current market climate and technical signals, a breach of this support could push the token towards $1.19. Alternatively, Pi Coin may stabilize below $1.72, battling persistent downward pressure exacerbated by bearish crossovers and market negativity.
A Brighter Future Requires Investor Support
To break free from the chains of uncertainty, Pi Coin would require unwavering backing from investors, a breakthrough above the $1.72 barrier, a climb towards $2.00 and beyond, and a series of new ATHs. Such a turnaround would signify a substantial shift from the prevailing bearish sentiment, painting a brighter, bullish picture for Pi Coin's future.