PI Network (PI) Drops 72% Amid Bearish Sentiment, Faces Further Decline

PI Network (PI) has been experiencing a steady decline since February 26, with its value dropping by 72%. This downward trend is attributed to the increasing bearish sentiment surrounding the token. The current market conditions suggest that PI may be on the brink of a new phase of decline, potentially revisiting its all-time low of $0.40.

An analysis of the PI/USD one-day chart reveals that token holders are actively distributing their assets. At the time of reporting, PI’s Balance of Power (BoP) is negative, indicating significant selling pressure in the market. The BoP indicator measures the strength of buying versus selling pressure by comparing the close price to the trading range within a given period. A negative BoP suggests that sellers are dominating the market, exerting downward pressure on the asset’s price.

Further supporting this bearish outlook is the Chaikin Money Flow (CMF) indicator, which is currently below the central line at -0.12. The CMF indicator assesses an asset’s buying and selling pressure. A negative CMF reading implies that the asset is experiencing more selling pressure than buying pressure, indicating that PI traders are distributing rather than accumulating. This signals bearish sentiment and confirms the downward momentum in the token’s price.

At the time of reporting, PI is trading at $0.63, below the dynamic support formed above it at $0.93 by its Super Trend indicator. The Super Trend indicator helps traders identify the market’s direction by placing a line above or below the price chart based on the asset’s volatility. When an asset’s price trades below the Super Trend line, it signals a bearish trend and hints at potential decline. If PI’s decline strengthens, it could revisit its all-time low of $0.40.

However, if demand returns to the PI market, its price could break above the resistance at $0.86 and surge to $1.01. This scenario highlights the potential for a recovery, but it remains contingent on a shift in market sentiment and increased buying pressure.