Pi Coin is currently only 10% away from the ATL - Is there a chance for the price to bounce back?

Pi Coin (PI) is currently experiencing a strong downtrend, trading around $0.44 – just a small distance from the lowest point (ATL) at $0.40. Over the past two months, this altcoin has continuously declined and shows no clear signs of bouncing back in the current market context.

One of the key factors contributing to this negative trend is the weakening correlation between Pi Coin and Bitcoin, which could affect its bounce back outlook.

Pi Coin continues to lose support

The correlation between Pi Coin (PI) and Bitcoin has now fallen to -0.50, indicating that these two assets are moving in opposite directions. While Bitcoin has risen in price recently, Pi Coin has decreased – this raises concerns among investors about the ability of this coin to bounce back.

The increasing separation between Pi Coin and the overall uptrend of the market, which is led by Bitcoin, makes the situation even more bleak. Although the general market sentiment is positive, PI still fails to leverage this momentum to form a growth trend.

The correlation between PI and Bitcoin | Source: TradingViewAlthough the overall trend is negative, the Squeeze Momentum indicator shows the potential for accumulating bullish momentum. The black dots appearing on the chart signal a "squeeze" phase that could lead to strong volatility afterwards.

However, in the current context, the upcoming volatility may be in a deeper downtrend, increasing selling pressure and pushing the price of PI down near ATL.

PI's Squeeze Momentum Indicator | Source: TradingView## Downward pressure continues

Currently, PI is being traded around $0.44, just below the resistance level of $0.45, which is an important level for this altcoin. However, with the ongoing downtrend, this level appears to be very difficult to break.

The price of PI has continuously fallen over the past two months and if there is no strong support, it still has the potential to fall deeper.

Pi Coin is only about 10% away from the ATL level at $0.40. Given the current market conditions and the weakening correlation between PI and Bitcoin, the likelihood of the price falling to this level is increasing.

Price analysis of PI | Source: TradingViewHowever, if investors increase buying pressure, PI may bounce back. Successfully breaking the support level of $0.45 could lead to a recovery, pushing the price towards $0.49.

If this happens, the current downtrend may be invalidated, creating potential opportunities for PI to bounce back.

Vincent