Pi Coin Approaches New Low as Bearish Death Cross is Nearing

Pi Coin has returned to the negative zone after a brief bullish period. At the time of writing, the trading price is slightly above $0.35, down nearly 8% in the last 24 hours. The sharp decline has wiped out most of the recent bullish growth, leaving only a growth of 2.3% over the past seven days. However, even those modest gains may soon disappear as this token is heading towards a new low. Cash Flow Dwindling, Bears Step In The Chaikin Money Flow (CMF) measures the money flow in or out of an asset. This indicator surged above 0 in a short time when Pi Coin increased from $0.32 to $0.39, indicating that buyers have entered. But currently, this number has fallen to -0.06, close to the lowest level on August 11, indicating that the inflow of capital has dried up and sellers are regaining control.

The Bull Bear Power indicator (BBP) further adds to this pessimistic picture. BBP compares buying pressure with selling pressure. When this indicator turns negative, it indicates that the bears are in control. The last time BBP turned negative, right after reaching its peak from August 9 to 11, the price of Pi Coin fell from $0.46 to $0.32, a decrease of more than 30%. A similar shift has occurred once again, signaling a potential upcoming bearish trend.

The short-lived bullish phase of Pi Coin has lost momentum. With increasing outflows and prevailing bearish pressure, this cryptocurrency seems likely to continue to fall. Unless the support zone of $0.34 is maintained, the price of Pi Coin may drop back to $0.32 — and could even fall lower. Currently, the bulls are struggling, while the bears seem ready to take full control. The Convergence Occurs When The Support Price Level Of Key Pi Coin Is Tested To capture smaller price movements, the focus will shift from the daily chart to the 4-hour chart. Here, the 20-day short-term Exponential Moving Average (EMA), or the red line, is about to cross below the 100-day long-term Exponential Moving Average (blue line). The EMA places more emphasis on recent prices, helping it respond to changes faster than the simple moving average.

When a shorter EMA crosses below a longer EMA, this phenomenon is called a "Death" cross bearish. This often signals that selling momentum is increasing and the asset may be at risk of establishing a new local bottom. Pi Coin is trading near $0.35, just above the important support zone of $0.34. If this zone is broken, the price of PI could slide down to $0.32, the lowest level at the end of August. Any deep fall could cause the price to hit a new low below $0.32. On the other hand, the buyers need a strong closing above the $0.36 zone to regain momentum. However, with both CMF and BBP working against them, the likelihood of winning still belongs to the sellers. The brief bullish surge of Pi Coin has lost momentum. With increasing outflows and bearish pressure prevailing, this coin seems to be facing the risk of a deeper fall. However, if Pi Coin somehow regains the level of $0.36 and then $0.38, we can expect the short-term bearish risks to be delayed.