Pi Network's Market Cap Plummets 71% to $5.5 Billion

Pi Network is currently experiencing significant bearish pressure, with its market capitalization plummeting dramatically. This decline highlights substantial selling activity among investors, who are increasingly wary of the asset's future prospects. Recent data shows that despite reaching a peak market cap of $19 billion earlier this year, Pi’s current valuation has dwindled to just $5.5 billion as of last week. This sharp decline underscores the intense selling pressure that has gripped the market, with analysts noting that negative directional movement indicators confirm the prevailing downtrend. Sellers appear to be in control, with no immediate signs of relinquishing their dominance.

Technical analyses of Pi Network reveal a clear shift in market sentiment towards bearish territory. The Average Directional Index (ADX), a key volatility indicator, has surged to 34.99, signaling a robust downtrend. High readings on the ADX, especially above 25, typically suggest a strong trend, but the direction of that trend is crucial. Currently, Pi Network’s sentiment is decidedly negative, with both the -DI and +DI indicators pointing to overwhelming selling pressure and waning buyer interest. The narrowing gap between these indicators underscores the stark contrast between bearish and bullish forces, with the -DI indicator rising to 31.55 while the +DI fell to 9, further solidifying the prevailing bearish momentum.

In addition to the Directional Movement Index (DMI) analysis, the Chaikin Money Flow (CMF) for Pi Network is currently at -0.23, a level not seen before. This negative value indicates that selling pressure has not only increased but has intensified over the last few weeks. The CMF serves as a key metric for assessing market liquidity and confirms that investor capital is consistently flowing out of Pi Network. With such sustained outflows, maintaining price support has become increasingly challenging. Market analysts suggest that without a significant uptick in buying activity or news to rekindle investor interest, the current bearish phase may continue to exacerbate the drop in price.

An examination of Pi Network’s price chart reveals a critical support level around $0.718, which has held the price in previous downturns. Should this level fail to maintain its integrity, the price could plummet to $0.62, marking an alarming breach and setting a new low since late February. Conversely, if the network can overcome any negative momentum, achieving a breakthrough at key resistance around $1.05 would allow for a potential path to reach $1.23. An upturn could manifest further price recovery towards $1.79, which would indicate a significant rebound from current trading levels.

Pi Network is presently in a challenging situation characterized by a sustained downtrend driven by strong selling forces and minimal buying interest. As market players closely monitor key support levels, it remains crucial for investors to stay informed about potential shifts in market sentiment. Whether Pi can reclaim its momentum and stage a recovery will depend on broader market conditions and upcoming developments within the cryptocurrency space.