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Pi coin’s Relative Strength Index (RSI) reveals a hidden bullish divergence despite ongoing price declines, signaling potential momentum shift.
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Exchange reserves have surged notably, indicating increased sell-side pressure as traders prepare to offload holdings.
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According to PiScan, key support at $0.4035 is critical and could determine whether Pi coin reverses or continues its downward trend.
Pi coin shows hidden bullish divergence amid rising exchange inflows and negative funding rates, with $0.4035 support crucial for future price direction.
Rising Exchange Reserves Signal Increased Sell Pressure on Pi Coin
Over the past two months, Pi coin has experienced a significant increase in exchange reserves, as large inflows to centralized exchanges (CEXs) have been recorded. This trend typically reflects holders moving assets to exchanges in preparation for selling, which can exert downward pressure on the price. Recent data from PiScan highlights that net inflows to major CEXs have consistently outweighed outflows, underscoring a cautious market sentiment among investors.
The accumulation of Pi coin on exchanges often precedes increased volatility, as heightened sell-side activity can trigger price declines. Traders should monitor these inflow patterns closely to anticipate potential market moves.
Persistent Negative Funding Rates Reflect Bearish Market Sentiment
Funding rates on Pi coin perpetual futures contracts remain deeply negative, indicating that short sellers dominate the market. In this context, traders holding long positions receive payments from those holding shorts, a dynamic that signals strong bearish conviction. Data from Coinglass confirms that the funding rate has maintained a negative bias for an extended period, reinforcing the prevailing downtrend.
Negative funding rates often discourage long positions, as the cost of maintaining them increases, thereby amplifying selling pressure. This environment suggests that market participants remain skeptical about near-term price appreciation for Pi coin.
Mixed Signals from Elder Ray Index Indicate Market Stalemate
The Elder Ray Index, which measures buying and selling strength through Bull and Bear Power indicators, presents a nuanced view of Pi coin’s price action. While Bear Power continues to show persistent negative values, indicating ongoing selling pressure, the absence of fresh spikes in bearish momentum suggests a potential stabilization phase. Bulls remain subdued, struggling to gain traction, but the lack of intensified selling could hint at an impending shift.
This stalemate scenario implies that while sellers currently dominate, exhaustion might be near, setting the stage for a possible reversal if buying interest strengthens.
Hidden Bullish Divergence in RSI Offers a Potential Reversal Signal
A key technical indicator providing cautious optimism is the Relative Strength Index (RSI). Despite Pi coin’s price making lower lows, the RSI has formed higher lows, a classic hidden bullish divergence. This pattern often precedes a reversal by signaling that downward momentum is waning even though prices continue to fall.
Traders and analysts view this divergence as a subtle hint that bearish pressure may be weakening, potentially paving the way for a recovery if confirmed by price action.
Key Resistance and Support Levels to Watch for Pi Coin
Should the hidden bullish divergence materialize into a price rebound, critical resistance levels lie at $0.4797 and $0.5152. Surpassing these points could unlock further upside potential toward $0.60. Additional resistance zones identified through Fibonacci retracement levels are $0.5037, $0.5347, and $0.5657, which may act as intermediate hurdles during any upward movement.
Conversely, a decisive break below the $0.4035 support level would invalidate the bullish outlook, likely triggering a more pronounced correction and increased selling pressure.
Conclusion
Pi coin currently faces a complex market environment characterized by rising exchange inflows, persistent negative funding rates, and subdued bullish momentum. However, the presence of a hidden bullish divergence in the RSI offers a glimmer of hope for a potential reversal. Investors should closely monitor the $0.4035 support and key resistance levels around $0.48 to $0.52 for signs of directional confirmation. Maintaining vigilance and employing disciplined risk management remains essential amid these mixed signals.
