Pi Coin has been declining within the market; its trading price fell to a low of 0.40. Its correlation with Bitcoin fell to 0.52, meaning a greater liberty concerning tendencies in the overall crypto market. This is where the gap between Pi Coin and Bitcoin has widened as Bitcoin hit new all-time highs in the past 24 hours.
This transformation indicates the development of Pi Coin towards being compliant with the significant market tendencies. Pi Coin did not increase with most of the altcoins thanks to the strength of Bitcoin. This loss of correlation levels that existed before may be a high level of uncertainty in the market concerning the value and the future of the asset.
Pi Coin holders have begun to liquidate positions as the price continues to decline. Blockchain activity data shows prolonged investor outflows, particularly at the point where the asset is near its all-time low. Such liquidations imply a lack of confidence in the coin's future performance.
Pi Coin had a more substantial divergence due to the timing of investors exiting when Bitcoin rallied. Pi Coin investors are not using the rally as an indication of overall market improvement but are instead unwinding their positions to limit losses.
Investor sentiment in investing is the key factor determining the direction of the price of crypto assets. When this confidence is lost, some sell-offs may bring a cycle of further decline, which can usually drive bad market expectations.
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Technical analysis reveals that Pi Coin price is still on the path of downward movement as it is sitting close to critical support, which is $0.40. Several clues point towards minor potential in the short term, and there are no intense reversal forms on any essential diagrams. The price's close approach to its all-time low also affects perception in the market.
These levels are also perceived as psychological levels by traders. A break may cause additional losses without the occurrence of a good buying support. Pi Coin can keep going as it has without having to change anything on the part of the investors or the market conditions. Technical and sentiment indicators confirm weakness remains unless an asset is provided with a catalyst to change its direction.