Big Pi Coin Wallets Turn to the Meme Coin Cycle for a Price Boost — Here’s Why

Pi Coin’s price action, despite a recent slide (down nearly 26% this month), is showing a strong technical signal for a potential rebound. Analysis suggests the token’s fate is now closely tied to the broader meme coin market, which large wallets are watching for a cue.

I. Strong Meme Coin Correlation

Pi Coin has developed a surprisingly tight relationship with major meme coins, indicating it is now heavily influenced by sentiment in that sector: Correlation Coefficients: Pi’s correlation coefficient now stands at 0.87 with Dogecoin (DOGE) and an extremely high 0.94 with Bonk (BONK). (A value near 1 signifies strong positive correlation).Market Influence: This tight link means that if the meme coin cycle experiences a recovery, PI’s price is highly likely to move in the same direction, amplifying any potential rebound.

II. The Bullish Signal from Momentum and Money Flow

Despite the falling price, two key technical indicators are flashing a bullish divergence, which is typically a sign that momentum is building for a potential reversal: RSI Bullish Divergence: Pi’s price has been forming lower lows, but the Relative Strength Index (RSI) a momentum indicator has been forming higher lows. This signals that the selling pressure is weakening and underlying momentum is improving.Chaikin Money Flow (CMF) Divergence: The Chaikin Money Flow (CMF), which measures money flowing into or out of the market, has remained positive and formed higher lows since September 12. This hints that big wallets have not fully exited and money inflow continues beneath the surface, supporting the odds of a relief rally.

III. Critical Price Levels

For a recovery to take hold, Pi Coin must successfully navigate its current technical structure (a descending triangle): Key Resistance: A clean daily close above $0.29 would confirm a strong breakout and invalidate the current bearish structure.Critical Support: The level to defend is $0.19. If this support fails to hold, Pi could slide toward $0.18 or even $0.15, marking a potential 9%–20% downside.

Conclusion

The strong correlation between Pi Coin and the meme coin cycle, coupled with the bullish divergence observed in both RSI and CMF, suggests that while the price is currently weak, the potential for a sharp relief rally is increasing. Big wallets are holding strong, and a rebound in the broader meme coin sector could provide the necessary catalyst for Pi Coin to confirm a breakout and move toward higher resistance levels.

Disclaimer

This article is for informational purposes only and is based on third-party on-chain and technical analysis. The views expressed do not constitute financial or investment advice. The cryptocurrency market is highly volatile, and all investment decisions should be preceded by thorough personal research (DYOR) and consultation with a qualified financial advisor.