Pi Network Drops 9% Amid Scam Allegations, Bearish Momentum

Pi Network (PI) has experienced a significant decline, dropping by 9% on Friday, which has added to its recent bearish momentum. This decline comes after Justin Bons, a prominent figure in the cryptocurrency community, called the project a potential “scam,” which has fueled negative sentiment among investors.

Technical indicators such as BBTrend and RSI are also pointing to sustained downside pressure. As the price struggles below $1, traders are closely monitoring the situation to see if PI can stabilize or if further losses are ahead.

Pi Network’s BBTrend is currently at -40.69, marking its lowest reading on record and staying negative for the past five days. The BBTrend, or Bollinger Band Trend, is an indicator that measures trend direction and strength based on price movement relative to Bollinger Bands. Positive values typically indicate bullish momentum, while negative values suggest bearish momentum, with extreme values often signaling strong trends.

With Pi Network’s BBTrend sitting deeply in negative territory, it points to sustained bearish momentum. This could suggest that sellers are firmly in control, and the asset may continue to face downward pressure unless a sharp reversal occurs. A prolonged negative BBTrend like this often signals that the market is in a strong downtrend, and traders may remain cautious until signs of stabilization or a positive shift appear.

Pi Network’s RSI has rebounded to 36.15 after dropping as low as 17.5 just a few hours ago. The RSI, or Relative Strength Index, is a momentum indicator that measures the speed and change of price movements. Values above 70 indicate overbought conditions, and values below 30 suggest an asset is oversold.

Pi Network’s RSI is now just above 36, moving out of the oversold zone but remaining in bearish territory. This could imply that while some buying pressure has returned, the overall trend is still weak. Further upside will depend on whether the RSI continues to climb. If the RSI fails to move higher, Pi Network may remain vulnerable to additional corrections.

Pi Network has recently dropped below the $1 level for the first time since February 22 as bearish momentum builds. This decline comes as Justin Bons recently exposed Pi Network’s flaws, raising concerns and calling the project a potential “scam.” If the correction deepens, PI price could test key support zones around $0.81 and possibly $0.62.

However, if Pi Network manages to regain strength despite the criticism, it could push toward resistance at $1.23. A strong rebound could open the door for a move toward $1.79, but sentiment remains fragile following Bons’ claims and the recent price breakdown.

In summary, Pi Network is facing significant challenges as it struggles to maintain its value above $1. The negative sentiment fueled by Justin Bons' allegations, combined with technical indicators pointing to sustained downside pressure, has created a bearish outlook for the cryptocurrency. Traders and investors will be closely watching for any signs of stabilization or a potential rebound in the coming days.