Bitcoin News Today: Investor Confidence Crumbles as Pi Coin Struggles to Hold Key Support

Pi Coin, the native token of the Pi Network, continues to struggle as bearish signals intensify, with analysts expressing concerns over its potential to break below critical support levels and set new all-time lows. Recent price movements highlight a lack of sustained recovery despite the broader cryptocurrency market stabilizing. As of the latest available data, Pi Coin trades at $0.345, barely holding above a key support level at $0.344. A break below this threshold could see the token fall toward $0.334 and eventually test its all-time low of $0.322, raising the possibility of further downside [3].

The token has already recorded a more than 88% drop from its peak in late February, tumbling to an all-time low of $0.33 on August 26 before staging a temporary rebound to $0.4. However, this reprieve was short-lived, and Pi Coin has since fallen back below $0.35. The weak performance is compounded by a significant token unlock schedule in September, with large releases of 12.3 million and 9.9 million coins on September 6 and 11, respectively. While the pressure may ease in the following weeks, the increased supply could further exacerbate selling pressure and volatility [1].

Another critical factor affecting Pi Coin's price is its growing divergence from Bitcoin. The correlation between Pi Coin and BTC has dropped to 0.12, indicating that the token is no longer tracking Bitcoin’s movements, which has remained stable above $110,000 [2]. This decoupling is seen as a negative sign by market analysts, as it suggests eroding investor confidence and a lack of broader market support. The token’s inability to benefit from Bitcoin’s stability makes a further decline more likely unless there is a significant shift in sentiment or inflows.

Technical indicators also support the bearish outlook. The Squeeze Momentum Indicator is flashing signs of an impending volatility spike, with black dots forming on the chart. Such a buildup historically leads to sharp price movements, and in the current bearish environment, a volatility burst is more likely to accelerate Pi Coin’s decline rather than trigger a rebound [3]. Analysts warn that without stronger inflows or renewed investor interest, the token’s path to recovery remains uncertain.

Despite recent developments in the Pi Network, including a major protocol upgrade from Version 19 to 23, the price has not responded positively. The upgrade aims to decentralize KYC processes and improve user verification, but these improvements have yet to translate into a tangible price rebound. Network outages are expected during the phased rollout, but the team has assured the community that users will be informed in advance. While the upgrade is a positive step for long-term development, it has not provided the immediate support the token needs [1].

As the token continues to face multiple headwinds, investors are advised to remain cautious. Any meaningful recovery would require not only a strong bounce off current support levels but also a rekindling of investor confidence and renewed alignment with the broader market. Until then, Pi Coin remains in a precarious position, with the risk of breaking key support levels and entering a new leg lower [3].

Source:

[1] Massive Pi Network Update Drops: What Every PI User ... (https://cryptopotato.com/massive-pi-network-update-drops-what-every-pi-user-needs-to-know/)

[2] Pi Coin Price Faces Catastrophic Crash And Bitcoin Can't ... (https://beincrypto.com/pi-coin-price-all-time-low-risk/)

[3] Pi Coin Price Prediction: Recovery Chances Fade as ... (https://coindoo.com/pi-coin-price-prediction-recovery-chances-fade-as-bearish-signals-grow/)