Pi Coin Forms Pennant — Short Rally Before a Likely Crash

Crypto

Pi Coin Forms Pennant — Short Rally Before a Likely Crash

Pi Coin has experienced a sharp drop in price this week, hinting at a short-term bullish pattern even as its broader outlook weakens.

The altcoin is attempting to stabilize after recent volatility, but the macro setup suggests any recovery may be brief before a deeper decline sets in.

Pi Coin Cant Escape Its Bearish Fate

The Chaikin Money Flow (CMF) indicator shows that inflows are slowing, though they have not disappeared entirely. This signals that investors have not fully abandoned Pi Coin despite the recent pullback. The presence of lingering inflows is a mildly positive sign because it shows some confidence remains in the assets short-term recovery.

However, this sentiment is fragile. A shift in market conditions or renewed bearishness could easily turn these soft inflows into outflows. For now, the indicator supports a modest bullish reaction, but sustained uncertainty continues to weigh on investor conviction.

Pi Coin CMF. Source: TradingView

From a macro standpoint, Pi Coin is showing signs of forming a bearish pennant pattern. This structure typically appears during downtrends and signals a continuation of bearish momentum after a brief consolidation phase. Pi Coin has already established both components — a clear price downtrend and tight-range consolidation — strengthening the likelihood of a breakdown.

If the bearish pennant plays out as expected, Pi Coin could face a deeper drop, with a macro target near $0.182. This level aligns with broader technical weakness and reflects the markets diminishing appetite for risk.

Pi Coin Pennant Pattern. Source: TradingViewPI Price Sees Short-term Optimism

Pi Coin is trading at $0.232 at the time of writing, marking a 16% decline over the last few days. The altcoin is currently holding above the $0.224 support level while moving within an ascending channel, testing its lower trendline for support.

This positioning could produce a short-term bounce. Pi Coin may recover toward $0.246 and potentially break above $0.250 if the channel structure remains intact. Such a move would align with the brief bullish sentiment implied by the CMF.

Pi Coin Price Analysis. Source: TradingView

However, if market conditions deteriorate or investor sentiment weakens, Pi Coin risks losing the $0.224 support. A breakdown below this level could send the price to $0.217 or lower, invalidating the short-term bullish thesis and reinforcing the broader bearish pattern.