The price of PiCoin is attempting a short-term recovery after a recent bearish trend and is slightly rising. Buying sentiment has somewhat improved, but the overall macro outlook remains cautious.
Structural indicators suggest that this rise may only be a corrective phase. If momentum weakens, it will be exposed to downward pressure again.
Upward trend for PiCoin investors
PiCoin is currently forming a hidden bearish divergence on the chart. Between December 19 and January 3, while the price is declining, the Relative Strength Index (RSI) has updated its highs. This divergence indicates that the support for price increases is weak.
Hidden bearish divergence often appears during corrective phases of a downtrend. Even with short-term bullish sentiment, the underlying structure remains dominated by selling pressure.
This pattern suggests that if the temporary buying momentum fades, there is a possibility of the main bearish trend resuming. This increases the downside risk for Pi Coin.
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Macroeconomic indicators show a somewhat balanced picture. The Chaikin Money Flow (CMF) has broken above the zero line and reached a recent monthly high. As CMF tracks volume-weighted capital inflows, it serves as a reliable indicator of investor commitment, especially in unstable market conditions.
The rise in CMF indicates sustained accumulation rather than speculative pump. Despite mixed technical signals, investors remain willing to commit capital. This has acted as a recent price stabilizer and a short-term barrier against market volatility for Pi Coin.
The immediate challenge for Pi Coin is breaking above the $0.214 resistance level. This level coincides with the 23.6% Fibonacci retracement, making it significant. The price has reversed multiple times near this level, indicating strong selling pressure from traders defending high-cost positions.
To dispel bearish sentiment, a clear turning point is essential. If Pi Coin can close above $0.214, the breakout from the trendline will be confirmed. This would open up potential for gains up to $0.226, with further upside possible depending on increased volume and improved sentiment.
If the bullish mood fails to hold, Pi Coin faces the risk of falling again. If it breaks below $0.207, selling could accelerate. In that case, the price would likely test the key support at $0.199, and without buying support, bearish sentiment would strengthen.