Pi Coin has been facing considerable downward pressure recently, with bearish sentiment increasing in the market. After experiencing a sharp decline in both May and June, Pi Coin price enters July with the potential for further challenges.
Several factors, including a major token unlock, could add to the selling pressure, leaving the altcoin vulnerable to further price drops.
Pi Coin is set to face significant pressure in July due to the upcoming token unlock event. According to Pi Scan Unlock analysis, more than 318 million Pi (PI), worth nearly $160 million, will be gradually unlocked throughout the month. This increased supply could weigh on the price.
The token unlock, combined with a lack of strong demand, could push Pi Coin further into bearish territory. Investors may look to sell off their holdings before the new tokens flood the market, adding additional downward pressure on the price. As more tokens enter circulation, the existing supply-demand imbalance could make it difficult for Pi Coin to recover in the near term.
Pi Coin’s macro momentum has also been impacted by a drop in the Chaikin Money Flow (CMF) over the past week. The CMF indicator, which tracks the accumulation and distribution of an asset, has been trending downward, signaling increased selling pressure. While earlier inflows provided some hope for a potential trend reversal, the outflows that followed suggest a waning of investor confidence in Pi Coin.
Rising outflows reflect growing investor concerns following a lackluster performance as more holders exit their positions in anticipation of further price declines. The current trend suggests that Pi Coin may struggle to regain its bullish momentum, especially with the looming token unlock and continuing bearish market sentiment.
Pi Coin’s price has been down 21.8% over the past week, holding steady at $0.49. This support level has helped prevent a sharper drop, but it remains vulnerable to further declines. If Pi Coin fails to maintain this level, the next major support at $0.45 could come under pressure.
Given the factors at play, Pi Coin is more likely to experience a correction in July. The altcoin’s all-time low (ATL) of $0.40 is 19% away from its current price. Any substantial sell-off could push the price toward this level. If the price fails to hold above $0.45, Pi Coin could see a further decline.
For Pi Coin to invalidate the bearish outlook, a strong shift in momentum is necessary. A bounce off $0.49 and a break above $0.51 would mark a shift toward a more bullish trend. Additionally, flipping $0.57 into support would be a key factor in reversing the current downtrend. This could potentially drive the price higher.
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