Pi Network's 43% Drop Slows as Bulls Eye $3

Pi Network (PI) has experienced a significant decline of nearly 43% over the past four days, falling from levels close to $3. Despite this drop, technical indicators suggest that the downtrend may be losing momentum, with both the DMI and BBTrend showing signs of stabilization. If bullish pressure returns, PI could attempt to break above key resistance levels, potentially setting the stage for a move toward $3. However, if selling pressure intensifies, PI could fall below $1.50 and test lower ranges.

Pi Network's trend strength has sharply declined, as reflected in its Directional Movement Index (DMI). The Average Directional Index (ADX), which measures the strength of a trend, dropped from 37.5 yesterday to 16, indicating that the prior downtrend has significantly weakened. The ADX does not indicate direction but rather the intensity of a trend, with values above 25 suggesting a strong trend and anything below 20 pointing to weak or indecisive price action. With the ADX at 16, PI is currently in a phase where momentum is fading, suggesting that neither buyers nor sellers have firm control.

Alongside this, PI’s +DI (positive directional index) has declined from 25.8 to 17, signaling a weakening bullish force. In contrast, the -DI (negative directional index) has risen from 17.8 to 23, reflecting an increase in selling pressure. This shift indicates that PI is still in a downtrend, though not a particularly strong one, as the ADX suggests low trend strength overall. If -DI continues to rise while ADX stays below 20, PI could remain in a sluggish downtrend rather than a steep decline. However, if ADX starts climbing again alongside the -DI, selling pressure could intensify, leading to a sharper drop. Conversely, if buyers step in and push +DI back above -DI, PI could stabilize and potentially enter a consolidation phase.

Pi Network has been in a prolonged downtrend, as indicated by its BBTrend indicator, which has remained negative since February 28. Yesterday, PI’s BBTrend hit a negative peak of -27.9, signaling intense selling pressure before recovering to its current level of -6.6. The BBTrend, derived from Bollinger Bands, is a