Pi Network's IOU Plummets 42% Amidst Pyramid Scheme Fears

The price of Pi Network (PI) IOU has plummeted by 42% over the past 24 hours, raising concerns among investors as the altcoin's mainnet launch approaches on February 20. The sharp decline comes amidst growing skepticism surrounding the project, with rumors of it being labeled a pyramid scheme making it difficult for the token to gain traction.

The Relative Strength Index (RSI) for Pi Network recently breached into the overbought zone, only to experience a sharp downtick in the past 24 hours. Historically, tokens that enter this zone often face a reversal, as seen with PI IOU. While the RSI still holds above the neutral line at 50.0, the overall bearish momentum appears to be building, suggesting that the negative sentiment surrounding the token could lead to further declines.

The Chaikin Money Flow (CMF) indicator, which measures the amount of money flowing into or out of an asset, has been on a decline since the start of the month. Despite some occasional upticks, the CMF has failed to secure the zero line as support. This trend indicates that outflows are currently dominating inflows, signaling a lack of confidence among investors. Such a situation is often detrimental to a token's price performance, as it indicates a lack of buy-side interest.

With the CMF's ongoing decline and the market sentiment showing signs of weakness, Pi Network's price could continue to struggle in the short term. The overwhelming selling pressure coupled with investor skepticism is limiting the ability of Pi Network to rally. For any sustained upward momentum, the market needs stronger support and reassurance from investors, which currently seems to be lacking.

PI price currently stands at $72, having dropped 42% in just 24 hours. This sharp decline occurred after the altcoin failed to breach and secure $130 as a support floor. With concerns growing around the upcoming mainnet launch, the price is expected to face further downward pressure. The current price level may not be able to hold, and the bearish sentiment could extend PI's losses.

Although PI is holding above the support of $63, it remains susceptible to further declines. Losing this support could bring the price down to $47, which would result in significant losses for investors who have held onto the coin in recent weeks. The altcoin's potential to recover hinges on maintaining