Selling pressure is overwhelming, bad technical signals – Is PI Coin about to bottom out historically?

The analysis of the daily chart for the PI/USD pair shows that this altcoin has had a short accumulation phase from July 1 to July 4, with a resistance level at 0.5 USD and support at 0.47 USD.

However, strong selling pressure on Friday caused the price to break through the temporary support zone, pushing the PI into a downtrend and increasing the likelihood of a return to retest the historical low at 0.4 USD.

Sell-off trend increases as upward momentum weakens

The Accumulation/Distribution line (A/D) of PI has continuously plummeted over the past two weeks, indicating a sharp decline in buying volume and weakening investor confidence. As of now, the A/D index is recorded at -300.73 million, equivalent to a decrease of 82% since June 25.

A/D chart of PI | Source: TradingViewThe A/D indicator measures the buying/selling pressure of an asset based on price movement and trading volume.

If A/D increases, it indicates strong buying power, investors are accumulating, and prices are trending upward. Conversely, in the case of PI, a decrease in A/D reflects the prevailing selling pressure, meaning many traders are taking profits or withdrawing funds instead of accumulating more – a signal indicating a lack of confidence in the short-term recovery potential of this coin.

Additionally, the Directional Movement Index (DMI) indicator of PI also reinforces the bearish scenario. Specifically, the +DI (blue line) is currently below the –DI (orange line), indicating that the downward trend is prevailing.

DMI Chart of PI | Source: TradingViewThe DMI indicator helps identify the strength of a price trend. When the +DI line is above the -DI, the upward trend prevails, indicating that buying pressure is dominating selling pressure. Conversely, when the +DI line is below the -DI, the market is under selling pressure – a clear sign that sellers are in control of the market.

The selling force overwhelms the PI market

According to data from Bitcoin Magazine, at the time of writing, PI is trading around the 0.44 USD mark, with the next important support level at the historical low of 0.4 USD. As sellers maintain control and negative momentum continues to increase, the possibility of the price returning to this low range is entirely possible.

Price analysis chart of PI | Source: TradingViewHowever, if the buying demand unexpectedly returns, the current bearish scenario may be invalidated. In that case, PI could recover past the new resistance level at 0.47 USD and approach the 0.50 USD area.

Overall, the PI market is at a crossroads: if the buying force appears strong enough, the recovery potential is still there – but if the current trend continues, the support level of 0.4 USD will be the next testing area.

Itadori