Pi Coin is facing the risk of a 30% plummet – Where does the reason come from?

Pi Coin investors are pinning high hopes on a rebound in October, but the technical signals tell a contrarian story. After losing nearly 24% of its value in just one month, Pi Coin is still hovering around the zone of 0.26 USD without being able to break through.

The sideways movement over the past week reflects weak demand, while an important support level is becoming a fragile boundary between maintaining price stability and the risk of entering a deeper correction.

The market echoes subside, signaling weakness

Pi Coin kicks off October amid decreasing interest from the trading community. The "social dominance" index – a measure of how often it is mentioned in the market – plummeted from 0.234% on September 26 to just 0.07% on October 3.

Although it has not yet reached the bottom of the month, this figure is already approaching the end zone of September, where it previously became a turning point leading to deep declines. The pattern repeats multiple times: on September 19, when social dominance hit a local bottom, the price of Pi Coin quickly fell from 0.36 USD to 0.26 USD in just a few sessions. A similar scenario also occurred after the drop on September 14. With the discussion flow continuing to dwindle, Pi Coin is once again facing the risk of additional selling pressure.

Pi Coin Price and Social Dominance | Source: Santiment## Signals from the volume also tell a similar story

The sluggish market is often clearly reflected in trading volume – and Pi Coin is no exception to this rule. Recent signals from "Wyckoff volume" – a volume analysis method used to determine the balance between buyers and sellers – are ringing alarm bells.

Price and trading volume of Pi Coin | Source: TradingViewIn previous recovery phases, the presence of green or blue volume bars often indicates that buying pressure is regaining control. In contrast, when yellow and red persist, the market almost always witnesses deep corrections.

Currently, the gold chain is consolidating the same observation that the social dominance index has indicated: buyers are gradually losing their advantage, while pressure from the bears is increasing. If the volume does not soon show a positive shift – from gold to green – the scenario of Pi Coin continuing to weaken is almost unavoidable.

The price of Pi Coin is at a critical support level

The 12-hour chart is sending highly unfavorable signals for Pi Coin. This coin is moving in a descending triangle pattern – a bearish technical structure characterized by consecutively lower highs while still holding at the same support zone. Market momentum is also not looking very bright.

The RSI index – a measure of the balance between buyers and sellers – has increased slightly, but the price has created a lower peak. This divergence indicates that although momentum shows signs of recovery, control remains firmly in the hands of the bears.

The PI/USDT chart on the 12-hour timeframe | Source: TradingViewIf the 0.25 USD level is breached, a scenario of a deep drop to 0.22 USD, or even 0.18 USD (equivalent to a nearly 30% correction)could completely occur. On the contrary, a signal negating the negative scenario only appears when the price surpasses 0.27 USD – opening up short-term recovery opportunities to 0.29 USD and further to 0.32 USD.

In the current context, as market echoes fade away, trading volume leans heavily towards the bears and the technical patterns remain bleak, everything seems to be pointing in one direction: if the 0.25 USD mark does not hold, Pi Coin is likely to face a new deep decline.

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