Could Rising Cash Flow Trigger Pi Coin Price Break Out of 3-Month Downtrend?

Pi Coin is struggling with a prolonged downward trend, pushing this altcoin back to its All-Time-Low (ATL).

Despite investors' attempts to change this trend, market conditions remain unfavorable. This continuous downward trend has created uncertainty about the future price direction of Pi Coin.

Pi Coin Investors Are Hoping

Pi Coin's Relative Strength Index (RSI) has signaled a downward trend over the past few weeks. Although the RSI has occasionally crossed the neutral level during this period, it consistently failed to maintain it. This pattern was observed again this week, reinforcing the idea that Pi Coin is facing continuous downward pressure.

Moreover, the broader market sentiment remains pessimistic towards Pi Coin. Despite occasional price increase efforts, the inability to sustain an upward trend suggests this altcoin may struggle to escape the downward trend.

Although the overall market sentiment is declining, Pi Coin's Chaikin Money Flow (CMF) has shown an upward trend. The CMF indicates increasing inflow into Pi Coin, suggesting growing investor interest, despite fluctuations in commitment.

Despite mixed technical indicators, the increase in inflow is the primary factor preventing Pi Coin from falling to ATL. If these cash flows continue, they may provide sufficient support to maintain Pi Coin's price above recent lows.

This could prevent further significant decline, helping to stabilize the altcoin's price in the short term.

PI Price Is Seeking Recovery

Currently, Pi Coin is trading at $0.383, unable to break through the important resistance level at $0.440. This has led to a 12% decline over the past three days, reinforcing the three-month-long downward trend. Failure to overcome important resistance levels has made Pi Coin vulnerable to further losses.

Pi Coin's price is currently only about 16% away from its ATL of $0.322, and the mixed sentiment from technical indicators suggests it may not touch this level in the near future. The altcoin is likely to attempt a rebound from the current support level at $0.362.

However, if broader market conditions worsen or investor sentiment becomes more pessimistic, a price drop may be imminent. This could lead to Pi Coin breaking its support level and falling to $0.322, invalidating its current neutral-bullish prospect. In this scenario, Pi Coin could form a new ATL, pushing prices lower and intensifying the downward trend.