Pi Network is currently experiencing a turbulent phase, with a 15% drop in a week and increased selling pressure. Technical indicators suggest a bearish momentum, yet buying opportunities remain. Learn how to purchase PI on Bitget and navigate this volatile market.
The Pi Network continued to plummet, intensifying selling pressure due to macroeconomic uncertainty and ongoing token unlocks. PI is struggling below the 20-day exponential moving average, indicating potentially more significant losses.
Since its all-time high of $3 on February 25, PI has recorded consistent weekly losses, with no significant influx of demand to halt the slide. Investors are concerned about global economic uncertainty and the daily releases of Pi tokens, which continue to weigh heavily on market sentiment.
The MACD indicator readings of the token reflect this growing bearish trend. Currently, the PI’s MACD line (blue) is below the signal line (orange), indicating a decline in buying activity. Traders view this setup as a sell signal, which could exacerbate the downward pressure on the token’s price.
Furthermore, PI’s negative Balance of Power (BoP) indicator, at -0.12, indicates that sellers remain firmly in control of the market, with little resistance from buyers. These negative readings reinforce the bearish outlook, suggesting that selling momentum could persist unless new demand emerges.
Nevertheless, the RSI is in oversold territory, and the Woodies CCI is starting to indicate a bullish reversal, showing divergence and higher lows. However, a drop to the $0.43 zone seems inevitable unless there is a substantial influx of capital.
Currently, PI is trading at $0.5, trading below its 20-day exponential moving average (EMA), which forms a dynamic resistance above its price. When an asset trades below its 20-day EMA, it indicates short-term bearish momentum and potential for further downside.
If sellers maintain control, they could push the token’s price to revisit its historical low at $0.40. However, a rebound could propel the Pi Network token above the 20-day EMA and towards $0.79.
In summary, Pi Network is going through a challenging period, with a weekly drop of 15% despite a gloomy cryptocurrency market. Technical indicators highlight the dominance of sellers and the bearish momentum, suggesting that the toughest phase might not be over for the token. Investors will need to stay vigilant and ready to adapt to changing circumstances.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
