Pi Network Faces Bearish Pressure as Selling Momentum Builds

Pi Network (PI) has been experiencing a period of consolidation after reaching new highs in late February. Technical indicators suggest a mixed outlook, with the Directional Movement Index (DMI) showing that sellers are attempting to maintain control. The +DI has dropped while the -DI is rising, indicating increasing bearish momentum. This shift suggests that selling pressure is overtaking buying pressure, which could lead to further price weakness if the trend continues.

The Average Directional Index (ADX) has declined to 11.5, down from 17.7 the previous day. This decline suggests that the current trend, whether bullish or bearish, is losing momentum and is less likely to continue in the short term. For a bullish reversal, the +DI would need to reclaim dominance over the -DI, accompanied by an increase in the ADX, confirming a stronger trend direction.

Meanwhile, the Relative Strength Index (RSI) for Pi Network has been neutral, fluctuating between 45 and 55 for the past three days. This neutral stance indicates a lack of strong momentum in either direction. A stronger bullish outlook would require the RSI to break above 55, signaling increasing buying interest. Conversely, a drop below 45 could indicate growing bearish momentum, potentially leading to further price declines.

Pi Network's recent surge in followers on X has not translated into a listing on major exchanges, which could contribute to more selling pressure. The upcoming unlock of 188 million tokens this month adds to the downside risks, as this event could lead to increased supply and potential price corrections.

If buying pressure returns and Pi Network resumes its uptrend, it could first test resistance around $2. A breakout above this level, combined with strong momentum, could push Pi toward $3 and even higher, marking new all-time highs. However, if the uptrend fails to materialize and selling pressure increases, the price could enter a corrective phase, potentially declining toward $1.51.