TLDR
- Pi Network price dropped 23% over the past week to $1.38
- Chaikin Money Flow remains in bearish zone with dominant outflows
- Critical support at $1.19 must hold to prevent further decline
- Recovery requires breaking resistance at $1.43
- Momentum indicators show mixed signals with some potential bullish turn
Pi Network’s cryptocurrency has experienced a sharp decline in recent days, losing 23% of its value in just one week. The digital asset is now trading at $1.38 amid weakening investor confidence and heavy withdrawals from the market.$
The downturn comes after Pi reached an all-time high of $3.00 before entering a correction phase. The price found temporary support at $1.20 over the weekend, where buyers stepped in to push it back toward the $1.50 resistance level.
Market indicators paint a challenging picture for Pi Network. The Chaikin Money Flow (CMF) has stayed firmly in the bearish zone for several days, showing that money is flowing out of the asset at a faster rate than it’s coming in.
This outflow trend suggests investor confidence in Pi Network is waning. With limited new investments coming into the token, recovery prospects remain dim in the short term.
The technical outlook appears mixed. The Moving Average Convergence Divergence (MACD) indicator on daily charts shows consistent red bars on its histogram, pointing to ongoing bearish momentum in line with broader cryptocurrency market trends.
However, the 4-hour MACD chart offers a contrasting view. This shorter timeframe indicator is showing signs of potentially turning bullish, which might encourage buyers to return and attempt to break above the $1.50 resistance level.
Pi Network currently faces immediate resistance at $1.43. Breaking above this level could open a path toward $1.64, potentially invalidating the bearish outlook and signaling a trend reversal.
On the downside, the $1.19 support level remains crucial for Pi’s price stability. If this support fails to hold, Pi Network could face further declines, possibly dropping below the psychological $1.00 mark.
In a worst-case scenario, analysts suggest Pi could extend its losses toward the $0.76 level if current market conditions persist and support levels are breached.
The wider cryptocurrency market conditions are adding pressure to Pi Network’s performance. Bearish trends across the digital asset space are preventing Pi from gaining positive momentum despite occasional bursts of interest in the token.
Bulls need to flip the key level of $1.50 into support
For recovery to take hold, Pi Network needs to capitalize on its existing community support and convert the $1.50 level from resistance to support. This would require a boost in buying pressure and renewed investor confidence.
If Pi manages to break through the $1.50 barrier, technical analysts suggest the next target would be $1.80. This move could potentially end the current correction phase and put Pi back on an upward trajectory.
The correction that began after Pi’s all-time high has lasted several weeks. During this period, many investors have withdrawn funds, contributing to the price decline and creating a challenging environment for recovery.
Despite the recent price action, some market participants remain hopeful about Pi’s prospects if it can navigate the current difficult period. The cryptocurrency continues to attract attention, which could eventually translate into price support if market sentiment improves.
For now, Pi Network’s immediate future hangs in the balance as it struggles to maintain price stability in a challenging market environment with heavy investor withdrawals.
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