After several months of stagnation, Pi Coin is finally gaining momentum. The price of Pi Coin surged nearly 32% this week, marking one of its best performances in recent months. Traders are viewing this rally as a potential precursor to something larger. However, some metrics from Pi’s chart indicate that this rally may be tenuous unless the price surpasses a critical level.
Underneath the surface, indicators suggest a deeper narrative, one where confidence may be slowly rebuilding, and the next breakout could determine PI’s trajectory for the upcoming weeks.
Sponsored
A Quiet Confidence Builds Around The Pi Coin Rally
The momentum propelling Pi Coin is not merely based on random speculation; it is emerging from various sectors of the market.
The Smart Money Index (SMI), which tracks behavior from historically successful or institutional wallets, has risen sharply since October 25. The index recently surpassed its signal line for the first time in weeks, indicating that larger investors are re-entering after abstaining from much of the recent downturn.
Want more token insights like this? Sign up for Editor Harsh Notariya’s Daily Crypto Newsletter here.
Whale activity is starting to reflect this optimism. The Chaikin Money Flow (CMF), which measures significant money inflows, has just crossed above zero for the first time since mid-September.
Sponsored
The last occurrence of this kind led Pi Coin to experience a brief surge before tapering off. A positive CMF now suggests that whales are starting to allocate funds back into the token, rather than pulling out.
Retail traders appear to be following the lead of whales in this ongoing Pi Coin rally.
The Money Flow Index (MFI), which combines both price and trading volume to gauge buying pressure, has consistently achieved higher highs since October 12, indicating ongoing accumulation. When all three signals—smart money, whales, and retail—align like this, it often suggests a coordinated phase of quiet confidence before a significant price movement.
Sponsored
This newfound confidence, however, is about to face a critical challenge.
Falling Wedge Faces a Defining Moment
On the daily chart, the price of Pi Coin remains within a falling wedge, a formation that often indicates a potential bullish reversal. The price briefly approached the upper boundary of the wedge at $0.29 on October 27, only to be pushed back by sellers. However, buyers have since regained strength, preserving the structure of the Pi Coin rally.
Sponsored
If Pi Coin breaks and closes above $0.29, it would confirm a breakout and pave the way toward $0.32, then $0.37. The immediate hurdle for an extended PI rally is, however, $0.28—a level noted in prior forecasts as the first significant resistance.
A decisive move past this point could shift sentiment firmly in favor of bullish traders.
Nevertheless, risks remain. Between August 9 and October 29, Pi’s price formed lower highs while the Relative Strength Index (RSI), a momentum indicator measuring buying versus selling strength, established higher highs. This discrepancy, known as hidden bearish divergence, often suggests that the existing downtrend still possesses residual strength.
Currently, Pi Coin is down 36.8% over the past three months, maintaining a broader bearish trend for now. If the price dips below $0.20, it would invalidate the bullish setup entirely, potentially dragging it down to $0.18 or $0.15.
