Pi Coin's Wild Ride: 99% Crash, Recovery Hopes, and Bearish Crossover

Pi Coin, the altcoin that recently launched its mainnet, has experienced a tumultuous period following its debut. After the launch, the coin suffered a significant crash, losing 99% of its value in just four days. Despite showing signs of recovery, the damage remains substantial, and the token continues to struggle to regain its lost ground.

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 currently 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.

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 $1.1