Pi Network Dips 3% as Bearish Indicators Signal 10% Correction Risk

The Pi Network (PI) has retreated below the $0.4000 level, signaling renewed bearish pressure as key technical indicators point to a potential 10% correction. At the time of reporting, PI had declined by over 3% on Tuesday, extending a downtrend that began with a 9% drop on Sunday. The recent price action mirrors the bearish reversal seen in mid-July, when the token failed to hold above the 200-period Exponential Moving Average (EMA) at $0.4253, triggering a sharp decline from the $0.4734 neckline [1].

The current neckline in focus is at $0.3700, a level that previously acted as the base of an Adam and Eve pattern. If this support fails to hold, the token could see further downward movement, with the next potential target at $0.3334, marked by a low seen earlier in the week. The breakdown below the $0.4000 support and the 50-period EMA at $0.3884 has confirmed a bearish turnaround in the near-term technical outlook [1].

Traders are also noting a significant drop in market participation, with trading volume declining by nearly 30% over the last 24 hours. This reduction in volume suggests a lack of conviction in the current price action and increases the risk of a deeper correction. Analysts from FXStreet highlight that the weak volume profile supports the bearish bias, with continued selling pressure likely to push the price toward key support levels [1].

Technical indicators reinforce this bearish sentiment. The Relative Strength Index (RSI) has crossed below its central line on the 4-hour chart, currently standing at 43, indicating further downside potential before the asset reaches oversold territory. Similarly, the Moving Average Convergence Divergence (MACD) has shown a declining trend following a bearish signal on Monday, with the histogram bars turning red and pushing below the zero line [1]. This divergence signals increasing bearish momentum and a higher likelihood of further price declines.

Looking ahead, PI needs to reclaim the $0.4000 level to rekindle bullish momentum and challenge the 200-period EMA at $0.4253. However, with current technical conditions favoring the bears and market participation waning, such a move appears challenging in the near term. Investors and traders are advised to closely monitor the 50 EMA and key support levels for potential reversal cues or continued downward pressure [1].

Source:

[1] FXStreet. (2025, August 8). Pi Network Price Forecast: PI risks 10% drop as trading volume declines.

URL: https://www.fxstreet.com/cryptocurrencies/news/pi-network-price-forecast-pi-risks-10-drop-as-trading-volume-declines-202508120801