Pi Coin has faced a tumultuous period following its mainnet launch last week. After the launch, the altcoin suffered a massive crash, losing 99% of its value in just four days. 

While it has shown signs of recovery, the damage remains significant, and the token still struggles to regain lost ground.

Pi Coin Has Some Challenges Ahead

The Chaikin Money Flow (CMF) indicator has shown a dramatic fluctuation in Pi Coin’s market sentiment over the past week. Investors sold heavily following the mainnet launch, causing the CMF to drop. However, others took advantage of the low prices, causing a sharp spike in inflows.

This is evident in the spike in the indicator. Despite these inflows, a true bullish confirmation will occur when the CMF crosses the zero line, signaling sustained positive momentum and investor confidence in Pi Coin’s recovery.

Pi Coin’s recovery is still in its early stages, with the market sentiment showing mixed signals. The volume of inflows indicates some investors believe in the altcoin’s potential, but the indicator’s failure to consistently stay above the zero line suggests that the bullish momentum is not yet fully established. The token will need to see consistent buying pressure for the price to build momentum and for investor confidence to stabilize.

Pi Coin is also facing strong macro headwinds in the form of a bearish crossover. The Moving Average Convergence Divergence (MACD) has been observing a bearish crossover over the past 36 hours, which typically signals that further downward price action is likely. 

The market is under pressure, and Pi Coin’s price action reflects these broader trends. However, if the gradual recovery remains persistent and Pi Coin manages to generate a stronger interest among investors to boost the inflows, the altcoin could witness a bullish crossover. This would signal potential recovery ahead, confirmed by the bars on the histogram flipping above the neutral line.

Pi Coin Price Recovery May Take A While

At the time of writing, Pi Coin is trading at $1.56 after a 116% bounce over the weekend. Despite this brief recovery, the prevailing bearish signals point to the possibility of further decline. While the altcoin did chart an all-time high (ATH) of $1.72, it is closer to the support of $1.43.

Given the current market outlook and the technical indicators, it is likely to fall through this support soon and slip towards the support of $1.19. If not, the altcoin could continue to consolidate under $1.72, facing persistent downward pressure from both the bearish crossover and broader market negativity.

For Pi Coin to actually break out, it would need stronger support from the investors, a breach of the $1.72 barrier, a move to $2.00 and higher, and continued formation of new ATHs. This would be a significant turnaround and invalidate the current bearish outlook.

• Crypto prices traded within a range last week as crypto takes is relegated to the back burner in the wake of economic uncertainties.
• ETF inflows were negative as Bitcoin ETFs logged net outflows of $62.9Mn while Ethereum ETFs logged $8.9Mn in outflows.

Bitcoin

Bitcoin’s price action continued trading rangebound, with weekly highs and lows of $99,509 and $93,331, as uncertainty looms around inflation, Trump’s policies, and geopolitical events.

Zooming out, we see that price action has ranged at the daily support level for the last three weeks as current market conditions lack sufficient catalyst to push prices to new highs.

Open interest mimics price action as the week began with a reduction in the volume of open contracts which picked up on Wednesday, Feb. 19, congruent with price action.

Outlook

Bitcoin must remain above the daily support of $90,673 to remain in bullish territory. A close below this level on the daily time frame could trigger a fall to the $84,000 level.

Meanwhile, market sentiment has cooled significantly over the last month and is in neutral territory.

Bitcoin trades at $87,900 as of publishing.

Ethereum

Ethereum’s price action ranged last week logging a weekly high and low of $2,848 and $2,604 despite last week’s news of the Bybit hack.

Zooming out, we see a bleaker picture as ETH has been trending lower since Dec. 09 after failing to break above its March 2024 high.

Open interest data shows a steady rise in contract volume throughout the week though price traded rangebound.

Outlook

We reckon the next major support zone for ETH is the $2,500 level which has proven to be a strong liquidity level in the past.

ETH trades at $2,384 as of publishing.

Solana

Like Ethereum, Solana’s price has been declining since it failed to swing higher and form new candles above the last all-time high on the daily time frame.

Unlike Ethereum, last week’s price action was bearish as the price fell from a weekly open around $194 to a close around $171.

Open interest charts show topsy-turvy movement in open contract volumes as price falls.

Outlook

The next major support zone for Solana is at the $129 level. However, we may see smaller rallies as price trends lower overall.