Why Pi Coin Is Down 45% Linked to Bitcoin Correlation

Pi Coin Price Analysis: Why Pi Is Down 45% Today

Pi Coin is heavily sold, and following a dramatic fall, investors were shaken. The token has not regained momentum, with volatility and poor demand contributing to the bearish mood. The fall today is more structural, and traders are worried as to whether the asset can steady or will continue to fall.

The most recent chart movement indicates that the altcoin fell almost 45% during a single session, falling to the $0.18 range before trying to partially recover. This loss of such a drastic turn shows panic selling and weak market depth. Although there was a slight recovery effort, the token currently hangs around the level of $0.30, which is also a key support zone that is under close observation by traders.

PIUSDT CHART | SOURCE: X

More than ever, the technical downtrend has been long, and there have been frequent unsuccessful attempts to recover the high resistance. It is unlikely that the token will retest $0.20 or even continue to test $0.18 unless the coin can convincingly consolidate over $0.30. On the other hand, it would require reclaiming the lost value of $0.40 to build bullish confidence, but due to poor volumes, that is far off at present.

Bitcoin Slump Leave Pi Coin Exposed to Steeper Declines

Other than technical weakness, the crypto has been further associated with Bitcoin with a correlation of 0.74. Such direction implies that the crypto is being driven by the volatility of BTC. Although correlation is at times useful in supporting upside momentum, the fact that Bitcoin has failed to maintain rallies as of late has only worsened the losses for the token.

Also, in comparison to issued tokens, Pi Coin is vulnerable to poor liquidity and speculative trading activities. The market seems cautious, more so following multiple rejections at the $0.360 resistance. The longer Bitcoin is unable to rise to a higher level, the longer Pi Coin is exposed to severe slumps of the wider market.

Speculation Alone Fails to Sustain 

Pi Coin, despite its significant community backing, has yet to gain momentum in terms of adoption in comparison to its larger counterparts. The most recent buildup of more than 381 million tokens by whales indicated a growing confidence, although it remains unreflected in the widened market. Pi remains speculative without any major exchange listings or ecosystem integrations.

Moreover, the lack of clear project updates or a utility token is also a burden to sentiment. On the other hand, tokens that had stronger foundations, such as Shiba Inu, having DeFi tie-ins, or Dogecoin, having merchants adopt it, were robust in case of bad downsides. In the case of the top altcoin, speculation is not enough to eliminate sharp sell-offs.

In the future, Pi Coin is in a fragile position. Holding above $0.30 may form a short-term floor, while not being able to defend this zone will lead to more dips to $0.20 or below. To the bull side, a decisive turn of $0.360 into support would only confound the bearish script and leave a way out to recovery.

At this point, Pi Coin is stuck in the wider downward trend, with the price highly susceptible to external factors and further action of Bitcoin. Until liquidity becomes grounded and the ecosystem development becomes solid, traders should be ready for increased volatility.