Pi Coin Price Attempts Recovery but Bearish Risks Still Loom

Pi Coin price has shown signs of a short-term recovery following recent weakness, posting modest gains as buying interest gradually returns. Despite this improvement, the broader market environment remains cautious, and technical indicators suggest that the recent upward movement may be corrective rather than the start of a sustained bullish trend. As a result, Pi Coin could remain vulnerable to renewed downside pressure if momentum weakens.

From a technical perspective, Pi Coin is currently displaying a hidden bearish divergence, which often appears during corrective rallies within a broader downtrend. Between December 19 and January 3, the price formed a lower high while the Relative Strength Index printed a higher high. This divergence indicates that the recent price increase lacks strong underlying support and that selling pressure may still dominate beneath the surface. While short-term sentiment has improved, this setup suggests the prevailing bearish trend could resume once temporary buying interest fades.

On the macro side, indicators present a more balanced outlook. The Chaikin Money Flow has moved above the zero line and reached a near-monthly high, signaling improving capital inflows. Since CMF measures volume-weighted money movement, its rise suggests accumulation rather than short-lived speculative activity. This steady inflow of capital has helped Pi Coin maintain price stability and avoid deeper losses, offering a short-term cushion against broader crypto market volatility.

However, Pi Coin price continues to face a key resistance near $0.214, a level that aligns closely with the 23.6% Fibonacci retracement. Multiple rejections around this zone highlight persistent selling pressure, making it a critical barrier for bulls. A sustained close above $0.214 could confirm a breakout and open the door for a move toward $0.226, especially if trading volume and market sentiment improve.

If bullish momentum fails to hold, downside risks remain significant. A break below $0.207 could accelerate selling pressure and push Pi Coin toward the $0.199 support level. Failure to defend this area would reinforce the broader bearish outlook and increase the likelihood of further declines in the near term.