In the continuously evolving world of cryptocurrency, Pi Network has reportedly observed a noticeable decline in its trading price. Presently, it stands at $0.6894, indicating a 6% loss on a daily basis and a noteworthy 15% downturn over the past week.
The noteworthy Pi Coin reached its zenith at almost $3 in February before plummeting over a staggering 75%. It has been struggling lately to keep up its momentum. For those invested in Pi, the commencement of May started on a promising note as there was a sharp 200% surge in its price in just a few days, attaining a remarkable high of $1.67.
However, the subsequent steep decline quickly wiped out most of these initial gains. As the digital currency traders anticipate their next move, Pi is hovering precariously above a crucial support level. At present, it’s exposing a narrow weekly range between $0.688 and $0.816.
In a surprising turn of events, the trading volume saw an increase despite the dip in price. It climbed over 42% in the last day to a remarkable $158 million, implying heightened market activity. Still, the on-chain data reveals an increase in the exchange inflows, suggesting that more tokens are being prepared for sale. As a result, the selling pressure is predicted to persist as more PI coins are slated for release in the upcoming months – 263 million in June, followed by 233 million in July and 132 million in August.
Looking at the situation from a technical standpoint, the tides are decidedly bearish at the moment. All the principal moving averages such as the 10, 20, 50, and 100-day EMAs and SMAs are hovering above the price after the upsurge in market volatility in early May. As the Bollinger Bands tighten, Pi is currently steering close to the lower band, which indicates that selling pressure may continue to persist.
What the market momentum indicators reveal is also in alignment with the bearish perspective. The Moving Average Convergence Divergence (MACD) is reportedly still negative and lying below the signal line, suggesting that the downward trend will likely extend. In parallel, the Awesome Oscillator, which measures market momentum by scrutinizing recent price fluctuations, is reportedly in the red zone. It suggests that downward pressure is still prevalent.
In terms of bullish conviction, the Relative Strength Index (RSI) is slightly below neutral territory at 43.6. Despite the Stochastic RSI being deeply oversold at near 2.77, it doesn’t signal a reversal, implying a weak case for taking a long position. The Average Directional Index (ADX) is reported to be slightly below the critical 30 level at 29.9. It implies that, despite the intensity of the downtrend, it might be inching towards its end.
Overcoming the $0.75-$0.78 range could possibly change market sentiment. However, if that doesn’t happen, the significant support zones to watch out for are $0.60 and $0.50. As more tokens are released into circulation, and the demand fails to keep up with the supply, the path of least resistance is downwards.
Despite these immediate risks, Pi Network seems avid to create long-term value. It has recently launched a $100 million Pi Network Ventures fund that is devoted to projects with real-world applications in e-commerce, fintech, gaming, and artificial intelligence. However, until the fundamentals transform into augmented demand, the technical standpoint continues to remain weak.
