Pi Coin has been struggling to break free from a persistent downtrend, failing once again to breach the $0.360 resistance.
The altcoin has remained subdued for over a month, with recovery attempts stalling repeatedly. Making matters worse, its growing correlation with Bitcoin could drag Pi Coin lower.
Pi Coin Follows BTC
The correlation between Pi Coin and Bitcoin currently sits at 0.74, a figure that has been strengthening recently. While correlations can sometimes support price growth, this development poses a challenge for Pi Coin given Bitcoin’s ongoing volatility and inability to sustain upward momentum.
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Pi Coin mirroring Bitcoin’s performance could result in greater losses, especially as the broader crypto market struggles to find stability.
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Pi Coin Correlation To Bitcoin. Source: TradingViewFrom a technical perspective, Pi Coin’s momentum is weakening. The relative strength index (RSI) is slipping below the neutral 50.0 mark, entering bearish territory. This decline signals that selling pressure is intensifying, limiting Pi Coin’s chances of recovery unless favorable market conditions emerge.
A prolonged stay below this threshold would suggest weakening investor confidence. If bearish momentum persists, Pi Coin could face further declines, particularly if external market factors such as Bitcoin’s downturn amplify the pressure.
Pi Coin RSI. Source: TradingViewPI Price Decline Likely
At the time of writing, Pi Coin is trading at $0.345, holding just above its support at $0.340. The altcoin has dropped 3.5% after yet another rejection from the $0.360 resistance, which has capped its recovery attempts for weeks.
The repeated failure to breach this barrier reflects a lack of buyer strength. If market conditions worsen and Bitcoin remains weak, Pi Coin could slip below $0.340, falling to $0.334 and potentially nearing the all-time low of $0.322.
However, if Pi Coin manages to bounce off the $0.340 support and successfully pushes past $0.360, the bearish outlook could be invalidated. Flipping this resistance into support would pave the way for a recovery toward $0.381, offering investors some optimism.
Source: https://beincrypto.com/pi-coin-reliance-on-bitcoin-may-prove-costly/
