📢 Gate Square #MBG Posting Challenge# is Live— Post for MBG Rewards!
Want a share of 1,000 MBG? Get involved now—show your insights and real participation to become an MBG promoter!
💰 20 top posts will each win 50 MBG!
How to Participate:
1️⃣ Research the MBG project
Share your in-depth views on MBG’s fundamentals, community governance, development goals, and tokenomics, etc.
2️⃣ Join and share your real experience
Take part in MBG activities (CandyDrop, Launchpool, or spot trading), and post your screenshots, earnings, or step-by-step tutorials. Content can include profits, beginner-friendl
Pi Coin: Hidden bullish divergence - Can the bulls turn the tables to regain 0.6 USD?
Pi Coin is currently facing the risk of a fall; however, the hidden divergence between its momentum and value reveals contrarian signals.
In the context of a significant influx of capital into exchanges, along with investors shifting towards short selling, a potential reversal pattern is gradually forming.
Pi Coin reserves on exchanges increase sharply
In the past two months, the reserves of Pi Coin on trading platforms have seen a significant increase, especially with the recent spikes, indicating that large amounts of capital are flowing into the exchanges. This is often a signal that investors are preparing to sell, rather than continuing to hold the asset.
The latest data indicates that net inflows into major exchanges significantly outperform outflows. This serves as a clear warning to the buying side, which could lead to undesirable volatility in the short term.
The funding rate for Pi Coin's perpetual contracts remains negative, an indicator that traders are primarily focused on short positions, while having to pay a fee to maintain their bearish positions. This is a sign that the market sentiment is highly pessimistic, with the downtrend prevailing.
The bulls are at a disadvantage, but have not surrendered.
The Elder Ray index paints a complex picture of the market. The bulls remain silent, while Bear Power continues to show up with consistent red bars. However, these bars do not show a spike, which may indicate a stable trend, but not entirely negative – there is still a slight optimism that exists.
Although the situation has not shown clear signs of a breakthrough, the fact that the market has not completely fallen into a deep decline may indicate that the bulls still have a glimmer of hope, albeit weak.
Hidden bullish divergence: A fragile hope for the bulls
A glimmer of optimism for Pi Coin comes from the Relative Strength Index (RSI). While the price of Pi continues to set new lower lows, the RSI is painting higher lows. This is a hidden bullish divergence, a textbook sign that selling pressure is gradually weakening, even though the price has yet to reflect this change.
In addition, the Fibonacci indicator, calculated from the highest and lowest points of significant oscillation periods, provides additional resistance levels at $0.5, $0.53, and $0.56.
Emma