PI Altcoin Plummets 56% in Week Amid Bearish Sentiment

PI, a prominent altcoin, has experienced a significant decline in value, losing half of its worth over the past week. At the time of writing, the altcoin is trading at $0.72, a stark contrast to its price high of $1.67 from the previous week. This sharp drop indicates a growing bearish sentiment among its holders.

Technical indicators suggest that the downtrend may not be over, as selling pressure remains substantial. The BBTrend indicator, which measures the strength and direction of a trend based on the expansion and contraction of Bollinger Bands, is currently in the red on the daily chart. This negative value of -19.36 confirms that bearish forces are firmly in control. When BBTrend values are positive, it signals a strong uptrend, while negative values indicate increasing bearish momentum. PI’s negative BBTrend suggests that its price consistently closes near the lower Bollinger Band, reflecting sustained selling pressure and hinting at the potential for further downside.

Additionally, the token’s Elder-Ray Index supports this bearish outlook. At press time, the indicator returns a negative value of -0.12. The Elder Ray Index measures the strength of buying and selling pressure in the market, using two key components: Bull Power and Bear Power. When the index is negative, sellers dominate the market. This signals a bearish trend and hints at a continued downward momentum for PI.

Furthermore, the PI token trades below its 20-day exponential moving average (EMA), which forms dynamic resistance above it. The 20-day EMA measures an asset’s average price over the past 20 trading days, giving more weight to recent prices. When an asset trades below its 20-day EMA, recent price action is weaker than the short-term trend. This is a bearish signal indicating a lack of buying momentum. If the trend continues, PI could fall to $0.55. On the other hand, if buying pressure spikes, the PI token could rebound and climb to $1.01.

In summary, the recent plunge in PI’s value, coupled with bearish technical indicators, suggests that traders should brace for more downside. The sustained selling pressure and lack of buying momentum indicate a challenging environment for the altcoin in the near term. Investors and traders should closely monitor these indicators and market conditions to make informed decisions.