It’s been a bit of a rollercoaster for Pi Coin since it launched its main network just last week. Almost immediately after going live, the altcoin took a major tumble, losing a staggering 99% of its value in a mere four days.

While we’ve seen some signs of a potential comeback, the initial drop was pretty dramatic, and the token is still working hard to get back on its feet.

Pi Coin Has Some Challenges Ahead

Looking at the Chaikin Money Flow (CMF) indicator, we can see some pretty wild swings in investor sentiment towards Pi Coin over the last week. Right after the mainnet launch, it seems like a lot of investors decided to sell off, causing the CMF to take a dive. However, some folks saw the lower prices as a buying opportunity, triggering a sharp increase in money flowing back into the token.

You can really see this in the spike on the indicator. Even with this renewed interest, to really confirm a bullish trend, we need to see the CMF consistently climb above the zero line. That would signal sustained positive momentum and that investors are genuinely confident in Pi Coin’s recovery.

Right now, Pi Coin’s recovery is still in the early stages, and the overall market sentiment is giving us mixed signals. The amount of money flowing in does suggest that some investors believe in the altcoin’s future potential. However, the fact that the CMF indicator hasn’t consistently stayed above zero hints that bullish momentum hasn’t fully taken hold just yet. For the token to truly bounce back, we’ll need to see ongoing buying interest to build up the price and help restore investor confidence.

Adding to the mix, Pi Coin is also facing some broader market headwinds in the form of a bearish crossover. The Moving Average Convergence Divergence (MACD) has been showing a bearish crossover for the past 36 hours, which often suggests that the price might continue to drop.

The market is feeling the pressure, and Pi Coin’s price movements are reflecting these wider trends. However, if this gradual recovery keeps up and Pi Coin can spark even more interest from investors to boost those inflows, the altcoin could see a bullish crossover emerge. This would signal a potential recovery on the horizon, confirmed when the bars on the histogram flip to positive, rising above the neutral line.

Pi Coin Price Recovery May Take A While

Currently, Pi Coin is trading at $1.56 after a pretty decent 116% bounce over the weekend. Despite this short-lived recovery, the bearish signs we’re seeing suggest that further dips are still possible. While the altcoin did briefly hit an all-time high (ATH) of $1.72, it’s now closer to its support level of $1.43.

Considering the current market picture and what the technical indicators are telling us, it’s quite likely that it might break through this support level soon and slide further down towards the next support around $1.19. If this doesn’t happen, Pi Coin might just keep trading in a range below $1.72, continuing to face downward pressure from both the bearish crossover and the overall negative market sentiment.

For Pi Coin to truly break free and climb higher, it’s going to need much stronger backing from investors. We’d need to see it not only break through that $1.72 resistance but also push upwards towards $2.00 and beyond, consistently setting new all-time highs. That would be a major shift and would really challenge the current bearish outlook.