Support at 0.44 USD remains firm, will Pi Coin create a new high?

Pi Coin is currently trading near an important support level after a week of sluggish trading. At the time of writing, the price of PI is at $0.47 and is struggling to maintain above $0.44.

Although the on-chain metrics currently do not show strong trust from the market, there have been signs that the downward trend is beginning to show cracks, opening up opportunities for a directional shift.

OI and funding rate signal a pause

The price of Pi Coin is currently showing signs of hesitation, unclear about the next trend. According to the open contract data (OI) aggregated on Coinalyze in the 4-hour timeframe, the OI value fluctuates around 10.09 million dollars, and there are no signs of a strong trend in the past few days. This indicates that traders are being cautious, not very positive about opening additional Long or Short positions, creating a state of pause in the market.

OI of PI | Source: CoinalyzeHowever, the aggregated funding rate has increased to +0.0274, and the predicted funding rate is expected to continue rising, reaching +0.0516. This indicates that the Long side of Pi Coin is dominant and willing to pay extra fees to maintain their position, which is often a bullish sign.

The funding rate of PI | Source: CoinalyzeOI refers to the total number of outstanding contracts in the market. An increase in OI usually indicates that many traders are participating in the market, reinforcing the current trend. The funding rate, the fee between the Long and Short sides, also reflects the advantage of buyers when the funding rate is positive.

Overall, the stable OI along with a slight increase in the funding rate may reflect a bullish trend; however, in the case of Pi Coin, this trend still lacks strong conviction and cannot confirm a sustainable upward momentum.

The Weakening of Bear Power

With an increasing funding rate and a stable OI, the market tends to lean towards Long, but there is still a lack of certainty. This state of hesitation is clearly reflected in the Bull Bear Power indicator, a part of the Elder Ray Index, which tracks the strength of buyers and sellers in the market.

At the time of writing, the Bear Power indicator continues to weaken, indicating that the downward momentum is gradually losing strength and may signal the end of a bearish cycle.

The Bull Bear Power indicator of PI | Source: TradingView## Pi Coin price analysis: Main support remains strong

Pi Coin is currently trading at $0.47, hovering just above the important support level of $0.44. This support level is determined using the Fibonacci retracement tool, a technical tool used by traders to find potential support and resistance levels. This tool is drawn from the peak at the end of June to the low on July 6.

The Fibonacci retracement helps traders measure the price decrease compared to previous movements, thereby identifying potential support or continuation levels.

As of now, the support level of $0.44 remains intact, despite the overall downward trend of PI. If the price falls below this support level, Pi Coin may face a stronger correction, with the next target being the support level of $0.40.

PI price chart 1 day | Source: TradingViewConversely, if the growth momentum continues to strengthen, the next resistance level to watch is $0.49 — a level that Pi Coin has been rejected at multiple times before. A daily close above $0.49 will be an important signal, potentially reversing the short-term bearish structure and invalidating the bearish hypothesis, opening up the possibility of continued growth for Pi Coin.

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