Pi Coin dropped 25% in 20 days as retail investor Capital inflows increased.

Recently, Pi Coin has been under continuous heavy selling pressure, causing its price to fall to new lows in several weeks. This altcoin plummeted along with the weakening trend of the entire market, with Bitcoin being the main reason dragging its price down.

Declining investor confidence coupled with increasing withdrawals is fueling selling pressure, making any recovery attempts very weak.

Pi Coin follows Bitcoin.

on-chain indicators show negative sentiment among Pi Coin holders. The Chaikin Money Flow indicator recorded its lowest level in 8 months, indicating a strong outflow of funds. This suggests that investors are reducing their exposure to Pi Coin as the price continues to weaken.

The continuous selling reflects a loss of confidence after multiple failed recovery attempts. Many Pi Coin holders seem unwilling to wait any longer and are choosing to withdraw from their investment positions.

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The trend of Pi Coin remains heavily dependent on Bitcoin's volatility. The correlation coefficient between PI and Bitcoin is currently at 0.42. This correlation has been gradually increasing over the past three weeks, coinciding with Pi Coin's recent price drop.

This correlation makes the price of PI even more vulnerable to negative impacts. When Bitcoin falls, Pi Coin also declines , resulting in increasingly heavy losses. The high correlation in price declines weakens the possibility of independent recovery – unless the overall market stabilizes or there is positive news specifically for Pi Coin.

PI price falls to key support level.

At the time of writing, Pi Coin is trading at $0.201, down 25% in the past 20 days. The decline began after Pi Coin failed to break through the $0.272 resistance level. Being rejected at this level signals a continued bearish trend.

Pi Coin is currently testing the support zone at $0.198 USD – the lowest level in the past 8 weeks and a Dip . This price zone is crucial. However, bearish signals remain strong, and if this support is broken, PI could fall to $0.188 USD, or even $0.180 USD, extending the downtrend.

A positive scenario is still possible if history repeats itself. If Pi Coin successfully bounces back from the $0.198 support level, short-term confidence could improve. If Pi Coin regains the $0.208 support zone, negative sentiment will weaken, and PI could then head towards $0.217 – signaling a temporary recovery.