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Highlights
- Pi Coin price has hit an all-time low at $0.4003 as the broader crypto market retraces.
- However, open interest is showing a bullish divergence as it rises despite the price dropping.
- The price might rebound to the 50-day SMA around $0.50 if traders buy this dip.
Pi Coin price is caught up in the grip of bears. Just yesterday, it printed its lowest price in history, and that is $0.40003. Pi trades at $0.405 today, August 1, with a 3.45% drop in 24 hours. However, open interest might dictate where it will go next, considering it is forming a bullish divergence.
Pi Network Price Drops to New All-Time Low
For weeks now, traders holding Pi Coin have been on edge, anticipating the price might drop to its lowest level. This was expected considering that demand has dried up and sellers are not giving up.
In a recent analysis, CoinGape reported that if the price falls below $0.419, Pi Coin might crash to $0.32. This drop remains likely because even this bottom at $0.4003 is not bringing buyers back. CoinMarketCap data shows that the volumes for the PI token in the last 24 hours came in at only $79 million, a 13% drop from Thursday.
Now, Fib retracement levels show that if another wave of selling comes, falling to $0.32 will not mark the end of the bleeding. Instead, a crash to $0.10 might just happen.
Nevertheless, the outlook is not all gloomy because there are past patterns that are worth considering. Most importantly, the 50-day SMA level has often provided relief after record lows are created. In this case, the Pi Coin price has a chance to get to $0.50.
At the same time, the RSI might offer some breathing room. It is oversold, and what this means is sellers might be becoming exhausted. If they are pushed out of the market, this is also another reason why getting to $0.50 remains possible.
Open Interest Prints a Bullish Divergence, Will Price Recover?
Data from Coinanalyze is also favoring the possibility of Pi Coin price bouncing back. That is because open interest is rising when the price is dropping. In fact, it has soared past $30 million. This shows that even when the price is dropping, traders are still jumping in.
When the price drops, shorting is usually the obvious move for many traders. Still, some of these drops have been the calm before a rally. Therefore, it would not be surprising if a few are making bullish bets.
When there is this discrepancy, traders might also get the belief that the Pi Network price forecast will become bullish. This sentiment could be what will support the price of Pi Coin to get to $0.50.
However, if this open interest is bearish in that traders are betting the price will drop, the end of the Pi Coin fall might not be anywhere in sight.
Lastly, CEX balances are showing more support for bullish traders than bearish traders. More than 6 million PI coins have left exchanges in the last 24 hours. If these holders are not selling the dip, there might be room for the Pi Coin price to rebound.
Frequently Asked Questions (FAQs)
1. Why is Pi Coin price dropping?
2. Will Pi Coin price recover after reaching an all-time low?
3. Is the rising open interest bearish or bullish for Pi Coin?
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