Pi Coin Drops 18% as Traders Take Profits After Rally

Today, Pi Coin fell sharply, losing close to 18% in a single day and reaching $0.22. The decline has moderated, with the coin now trading near $0.23, a daily decrease of 3%. Trading activity has also slowed, with volume dropping over 63%. The pullback follows a rapid rise on October 27, when Pi Coin jumped nearly 32% to $0.28.

Pi Coin Rally Caused Profit-Taking

Just a day before the sell-off, Pi Coin surged sharply, reaching a peak of $0.29. This happened after 3.32 million users moved to the mainnet, and selling from exchanges decreased. Traders saw these as signs of stronger fundamentals and hoped the price would keep rising.

The initial optimism quickly faded. Multiple investors took profits from the rapid gains, leading to a sudden decline. Technical indicators suggested resistance around $0.29, and without substantial demand, heavy selling continued.

This trend mirrors past Pi Coin rallies, where the large circulating supply of 8.29 billion tokens often makes it difficult to retain higher levels. Long-term gains depend on steady trading volume and continued investor engagement.

Capital Outflows Indicate Caution

Pi Coin’s capital movements have followed the recent price drop. Chaikin Money Flow (CMF) dropped to its lowest point in two months, reflecting that many traders are taking profits. Sudden CMF declines often point to rising negative sentiment, even if prices recover temporarily.

Other signals are unclear. The Relative Strength Index (RSI) is above 50, showing possible short-term gains. But without stronger buying, this may not lead to a lasting rebound. Pi Coin remains in a delicate state as the market balances optimism and profit-taking.

Support Levels to Watch for Next

Pi Coin currently trades just above a key support level at $0.23. This level could act as a support for a possible rebound if buyers act decisively. A bounce from $0.229 could push the price toward $0.256 or more, hinting at a partial recovery.

If the support fails, Pi Coin might drop to $0.209 or $0.198. This would increase short-term selling and make it harder to gain upward momentum. Watching these levels can show whether the coin stabilizes or continues to correct.

Market trends and sentiment may also influence Pi Coin. With higher volatility near year-end, the coin is sensitive to profit-taking and wider economic factors.

What to Expect from Pi Coin?

Today’s decline may appear significant, but it mostly reflects short-term profit-taking rather than a change in fundamentals. Pi Coin’s recovery will rely on renewed buying interest and confidence at key support levels. The next few days could determine if Pi Coin stabilizes and regains momentum or if further corrections influence its short-term trajectory.