Pi Coin Loses $0.47 Support: Risk of Re-establishing $0.40 Bottom Increases

The daily chart of PI/USD shows that this altcoin had a short accumulation phase from 07/01 to 07/04, facing resistance at $0.50 and support at $0.47.

However, selling pressure increased on Friday, pushing the token below the short-term support range. Since then, PI has shown a downward trend, increasing the likelihood of retesting the All-Time-Low at $0.40.

PI Dumps Deeper as Price Momentum Weakens

PI's Accumulation/Distribution (A/D) line has dropped significantly over the past two weeks, indicating a substantial decline in buying volume and investor confidence. At the time of writing, this indicator was -300.73 million, decreasing 82% since 06/25.

The A/D line measures buying and selling pressure of an asset by analyzing price fluctuations and trading volume. When it increases, it suggests strong accumulation, meaning buyers are driving demand and pushing prices higher.

Conversely, as seen with PI, a declining A/D line indicates selling pressure outweighing buying interest. This suggests traders are selling PI instead of accumulating it, a sign of weakening confidence in the token's short-term recovery potential.

Moreover, the Directional Movement Index (DMI) structure of PI also aligns with this price decline scenario. The token's positive direction index (+DI, green) is currently below the negative direction index (-DI, orange), indicating the downward trend is gaining strength.

The DMI indicator measures the strength of an asset's price trend. It includes two lines: +DI, representing upward price movement, and -DI, representing downward price movement.

The market trend is bullish when +DI is above -DI. This means buying pressure is prevailing and the asset is in an upward trend.

Conversely, when +DI is below -DI, the downward price movement is strong. This is a bearish signal, indicating PI sellers are controlling the market more than buyers.

Sellers Dominate PI Market, but Buyers Could Shift the Situation

At the time of writing, PI is trading at $0.44, with the next key support level at the All-Time-Low of $0.40. With sellers maintaining tight control and creating downward momentum, the possibility of returning to this low price is likely.

However, if buying demand increases again, it could neutralize this downward outlook. In that case, PI coin price could recover, break through the new resistance at $0.47, and move towards $0.50.