Pi’s price movement has displayed a consistent bearish trend, with downward momentum gaining strength steadily. Following a period of consolidation above $0.190, sellers pushed for a significant breakdown, leading to a shift in market dynamics. This decline demonstrated clear intent, as evidenced by the expanding candle bodies and repeated closes near the lower end of the session, indicating active selling pressure rather than passive drift.
Source: TradingView
Structurally, the $0.190 level has now turned into a resistance zone post-breakdown. The continuous selling pressure and lack of buying interest elevate the possibility of a price drop towards the $0.1302 support level. If the selling pattern persists in the upcoming sessions, this level will serve as a crucial test for demand.
$0.130 liquidity floor faces a critical absorption phase
Currently, Pi’s price appears to be converging towards the $0.130 liquidity floor. As the price nears this range, liquidity concentration intensifies, potentially slowing down rapid declines while assessing the commitment of sellers. The likelihood of absorption increases if resting bids transform into aggressive market buys, often indicated by extended lower wicks and stronger closes above $0.130.
Consequently, tighter candle bodies could emerge, signaling an initial demand response. However, there is a heightened sweep risk if the increasing selling volume surpasses the bid wall. Additionally, broader market weakness or liquidity rotation could expedite a breach of this level. A close below $0.130 may lead to a swift decline towards the low-liquidity zone around $0.115, exposing further downside potential towards the historical demand zone at $0.100.
Overview of the broader market
It is important to note that the broader market weakness influenced the initial trend. The total crypto market cap declined by 5.04%, with Pi following suit, reflecting a general risk-off sentiment. Subsequently, selling pressure intensified across various altcoins.
Bitcoin’s dominance expanded, diverting liquidity from alternative assets and impacting Pi’s relative demand.
Source: CoinMarketCap
Currently trading at $0.1444, Pi has witnessed a surge in trading volume to $35.3 million, confirming active distribution rather than passive drift. The short-term momentum for the altcoin will remain delicate as long as bearish pressure persists, especially as Bitcoin seeks its own support levels on the charts. If the macro conditions stabilize, Pi could enter a consolidation phase above recent lows.
However, a failure to sustain the current structure could expose Pi to further downside risks, potentially pushing the price towards the $0.130 liquidity floor, which represents a critical demand test for Pi’s price.
Key Points
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The $0.190 level has now become a resistance point as selling momentum intensified, resulting in a 23.60% decline towards $0.130.
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The $0.130 liquidity floor is currently under absorption pressure, and a failure could lead to a downside move towards $0.115–$0.100.
following sentence: “The cat chased the mouse around the room.”
“The mouse was chased around the room by the cat.”