Selling pressure on Pi Network is escalating, damping hopes of recovery. With dwindling liquidity and increasing bear dominance, alarming signals emerge. Is it time to panic-sell tokens before it's too late?
The Pi Coin (PI) price has plummeted dramatically in recent days, sinking into the red after a brief recovery. Currently trading at around $0.35, the token has lost nearly 8% in just 24 hours, erasing most of its modest recent gains.
With an increase of only 2.3% over the past 7 days, Pi Coin now appears threatened with hitting new lows. The technical indicators have indeed sharply turned in favor of bearish forces. This suggests turbulence ahead for this cryptocurrency.
The analysis of technical indicators reinforces this pessimistic outlook. The Chaikin Money Flow (CMF), which measures incoming and outgoing money flows, has fallen to -0.06, approaching its August low. This reflects a drying up of capital inflows and sellers taking control.
The Bull Bear Power (BBP), which compares buying and selling pressures, has also turned red. This negative signal indicates that the bears now have the upper hand in the Pi Coin market. We recall that the last time this indicator entered bearish territory in late August, the PI price plunged more than 30% in just a few days.
Faced with these unfavorable dynamics, the bulls currently appear to be in serious trouble. Without a saving rebound, Pi Coin could well sink deeper into the abyss in the coming sessions.
Zooming in on the 4-hour chart, we can see that the 20-day exponential moving average (EMA) is about to cross below the 100-day EMA. This “bearish crossover” is often a harbinger of a prolonged downward period, with the risk of new local lows.
Pi Coin is trading just above the critical support level of $0.34. If this level gives way, the price could then slide down to $0.32, its late August low. Breaking through this threshold would expose the token to even darker prospects.
To reverse the trend, bulls will need to achieve a solid daily close above $0.36. But with such unfavorable technical indicators, the probability seems low in the short term.
In conclusion, Pi Coin appears to have entered a precarious phase, with a high risk of continued decline in the coming days. Investors should closely monitor the evolution of key support and resistance levels to assess upcoming opportunities in this cryptocurrency.
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