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Can Rising Inflows Trigger a Pi Coin Price Breakout?
Pi Coin is currently facing a critical moment. Despite a persistent three-month downtrend, a new surge in investor inflows is signaling a potential change in momentum. The altcoin is struggling to break past a key resistance level, but an underlying shift in market dynamics suggests a breakout might be on the horizon. Can this renewed interest provide the support needed for a price rally?
The Bearish Squeeze vs. Rising Inflows ๐
Pi Coin has been stuck in a persistent downtrend, trading at US$0.383 and failing to break a resistance level at US$0.440, which has led to a recent 12% decline. The Relative Strength Index (RSI) reinforces this bearish pressure, consistently signaling that selling momentum dominates the market. However, a crucial bullish counter-signal is emerging from the Chaikin Money Flow (CMF). The CMF shows a positive incline, indicating that funds are steadily flowing into Pi Coin. This rise in inflows is a key factor preventing the altcoin from falling to its all-time low (ATL) of US$0.322, providing a crucial support floor.
The Path to Breakout: Key Levels to Watch ๐ฏ
For Pi Coin to confirm a breakout, it needs to overcome its immediate resistance at US$0.440. If the rising inflows continue to provide enough buying pressure, a successful push past this level could trigger a rally, potentially pushing the price to US$0.44. Conversely, if demand weakens and the current support at US$0.362 is breached, the bearish outlook will be validated, and the price could resume its decline towards the US$0.322 ATL.
Conclusion
Pi Coin is at a pivotal point, with a battle between persistent bearish pressure and rising inflows. While the altcoin is struggling to break a key resistance level, the growing investor interest, as shown by the CMF, provides a glimmer of hope. The coming days will be a crucial test of whether this renewed buying pressure can overcome the bearish trend and trigger a price breakout.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high level of risk and volatility. Always conduct your own research (DYOR) and consult a professional financial advisor before making any investment decisions.