PI Coin Drops 24%: Are Signs of Seller Fatigue Indicating a Market Rebound?

The cryptocurrency market has recently experienced a severe downturn, leading to a staggering loss of $160 billion in total market capitalization in just 24 hours. This drastic shift has resulted in a 24% decline for PI Coin.

Despite this sharp drop, certain technical indicators point towards the possibility of a rebound for the altcoin.

Signs of Seller Fatigue in PI’s Market Decline

An examination of PI's hourly chart shows that its Relative Strength Index (RSI) is approaching oversold levels, indicative of diminishing selling pressure. Currently, the RSI stands at 31.36.

The RSI serves as a measure of market conditions, oscillating between 0 and 100. Readings above 70 suggest an asset is overbought and likely due for a pullback, whereas readings below 30 indicate an asset is oversold and could experience a recovery.

Given PI's status near an RSI of 31.36, it appears to be nearing oversold territory. This signals weakening selling and a potential for price recovery, especially if buyer interest increases.

Additionally, PI's price has recently dipped below the lower boundary of its Bollinger Bands indicator, further confirming seller fatigue. The Bollinger Bands consist of a middle-moving average and two outer bands that expand and contract based on market volatility.

Critical Level for PI: A Future Breakout or Continued Decline?

A revival in interest for PI may lead to a price increase toward its all-time high of $3, which was achieved on Thursday — an increase of 44% from the current rate of $2.08. However, achieving this necessitates PI breaking through the resistance level at $2.56.

On the other hand, if the downward trend persists due to lack of buying interest in PI, the price could plummet further, potentially dropping to $1.62.