The price of Pi Coin can rely on the launch of the Dogecoin ETF for a slight bounce back.

The price of Pi Coin has fallen by nearly 15% in the past month. In the last 24 hours, it has increased by about 1%; however, the overall momentum still shows signs of weakness.

Currently, Pi is fluctuating around $0.34, and many traders are concerned about the possibility of testing the lowest all-time level of around $0.32. However, an unlikely signal that could bring about a short-term recovery is the launch of a Dogecoin ETF.

The relationship with meme coins can stimulate price increases

One of the clearest signals comes from the correlation. Pi has shown a Pearson correlation of 0.79 with BONK and 0.62 with Shiba Inu over one month. The Pearson correlation coefficient measures the degree of co-movement between two assets, with a value of 1.0 indicating perfect correlation. With a level of 0.79, Pi Coin and BONK demonstrate a strong linkage.

Source: DeFillamaThis is particularly important because Bonk is one of the leading coins in the meme space. If the launch of the Dogecoin ETF (DOJE) stimulates a price surge in the meme coin market, PI could benefit from its close relationship with these coins.

At the same time, the money flow is showing slightly positive signs. The Chaikin Money Flow index (CMF), which monitors the money flowing in or out of an asset, has turned positive with a value of +0.02.

Pi Coin has witnessed new capital inflows | Source: TradingViewThe last time CMF recorded such a change, on August 30, Pi experienced a rapid price increase. The increase in CMF as the price of Pi solidifies its connection with BONK may not be a coincidence. These two signals indicate that investors are preparing to act if the meme coin market receives support from the launch of the $DOJE ETF.

To create a stronger move, the CMF needs to rise to +0.08, a level that was recorded at the end of August. This will confirm that larger money flows are supporting the correlation story. However, currently, traders will accept any growth, even if it is just a small improvement in the CMF.

The downtrend of Pi is weakening but has not been broken yet.

Another indicator, the Bull-Bear Strength (BBP), helps traders assess the strength of buying versus selling. Since September 2, the BBP has indicated that selling pressure is decreasing. Although the bears still control the price chart of Pi Coin, their advantage is narrowing. In previous instances, this easing has often led to short-term spikes. If selling pressure weakens, even a small push from buyers could trigger a recovery.

Pi Coin price analysis | Source: TradingViewThe weakening of bear strength ahead of the major event of the meme coin ETF further reinforces this view.

However, the technical chart still leans towards a bearish trend. The price of Pi is currently trading within a descending triangle, a pattern often associated with a breakout. Price support lies near $0.33 and $0.32, and if broken, the price of PI may test a new all-time low, invalidating the recovery hypothesis.

Unless investors can push the price of Pi above $0.36, the bearish structure will remain in place, and even a recovery might only result in a single green candle, rather than a sustainable growth trend.

Mr. Teacher