Pi Coin price plummets: risk of a further 22% drop as selling pressure reaches its highest level in two months.

The recent price drop of Pi Coin was not unexpected. This altcoin had formed a pattern indicating a clear weakening of the trend, and now that decline has actually occurred.

Furthermore, Bitcoin's influence on Pi Coin is gradually fading, removing a crucial support that previously helped keep Pi Coin's price somewhat stable.

Those holding Pi coins are selling them off.

The Chaikin Money Flow (CMF) indicator has fallen sharply in the past few days, reaching its lowest level in two and a half months. This downward trend confirms that Capital is flowing out of Pi Coin at an increasingly rapid pace. This development shows that investors are no longer cautious and are directly withdrawing money from this asset.

The CMF indicator has fallen to its lowest level in months, reflecting strong bearish sentiment among retail investors in Pi Coin. With such a high rate of Capital outflow, a price recovery will be difficult without a clear new catalyst. Given the current situation, Pi Coin faces the risk of a further sharp decline due to a lack of buying interest at the current price level.

The correlation index between Pi Coin and Bitcoin has recently fallen below 0 – a worrying sign because Pi Coin previously benefited from BTC's recovery. When the correlation is negative, Pi Coin moves in the opposite direction to Bitcoin, causing it to lose the momentum and support of the overall market trend.

Subsequently, this correlation level recovered slightly to 0.10; however, this level still shows almost no correlation with Bitcoin's price movements. In fact, even a strong increase in Bitcoin is unlikely to create positive momentum for Pi Coin at this time. Pi Coin's divergence from Bitcoin makes this altcoin even more vulnerable to negative internal factors.

PI prices may continue to fall sharply.

Pi Coin is currently trading around $0.174, still holding above the $0.171 support level, coinciding with the 38.2% Fibonacci retracement. However, this altcoin has also just broken out of an ascending channel pattern – a negative technical signal that formed last month. The price breaching the $0.197 mark confirms the bearish pattern has been triggered.

Breaking the uptrend channel suggests Pi Coin could fall further by 22.2%, targeting the $0.152 price level. With the CMF indicator declining and its correlation with Bitcoin weakening, a drop to $0.155 at the 23.6% Fibonacci level is increasingly likely. If it breaks through this bear market support zone, Pi Coin could fall even further to $0.141.

Currently, a positive shift in investor sentiment is the only factor that could reverse the downtrend. If selling pressure stops and the price regains the support level of $0.197, the worst-case scenario will be negated, opening up an opportunity for Pi Coin to rise back to the $0.216 region and recover its previous uptrend channel.