Pi Coin: Selling Pressure Decreasing
The distribution volume analysis according to the Wyckoff methodology offers a particularly insightful perspective on the current dynamics of Pi Coin. This approach, favored by institutional traders, helps identify control transfers between buyers and sellers through volumetric distribution studies.
At the height of the tariff-related crash, the daily chart displayed a dominant red bar. This classic signal of capitulation showed sellers in a position of absolute strength. Such a configuration typically reflects an aggressive distribution phase where holders liquidate their positions in panic.
But recent developments have changed the game. The bar has shifted to yellow, indicating sellers remain present but with significantly reduced intensity. More revealing still, the intensity of these yellow bars is gradually diminishing, demonstrating a progressive exhaustion of selling pressure.
This pattern is reminiscent of what was observed in early August, just before Pi Coin embarked on a rally of nearly 40% in just four days. If this dynamic continues without a resurgence of massive red selling bars, a similar movement could materialize in upcoming sessions.
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With Pi Coin poised to benefit from these upcoming key events, it’s the perfect time to enter the market. Some analysts estimate that Pi Coin’s price could reach between $2.75 and $2.80 by year-end. This projection is supported by a sentiment reversal and growing adoption.
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CMF Confirms Institutional Accumulation
The CMF (Chaikin Money Flow) reinforces this bullish interpretation. This indicator measures the net flow of capital entering or exiting an asset, with particular weighting on institutional volumes. It’s a valuable tool for detecting accumulation or distribution by “smart money.”
Although the CMF briefly entered negative territory during the volatility peak, it remains well above its October 7 floor and displays much more robust levels than in late August. This positive divergence signals that large portfolios continue to accumulate Pi Coin despite the apparent hesitation of retail investors.
The combination of a recovering CMF and yellowing Wyckoff bars paints a coherent picture: The capitulation is ending, weak hands have largely sold their positions, and institutions are discreetly taking advantage of these levels to strengthen their allocations.
For a significant rebound to materialize, Pi Coin will need to break through the resistance at $0.205. This breakout would pave the way to a technical target around $0.24, representing a potential gain of approximately 18% from current levels. The RSI also shows a bullish divergence, strengthening the case for a short-term reversal.
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