Pi Network's Token Loses 50% Value Amid Bearish Market Sentiment

Pi Network, once a darling of the cryptocurrency world, is now grappling with significant selling pressure as bears regain control of the market. The network's native token, which reached a peak market capitalization of $19.2 billion in February, has since lost nearly half its value, now standing at $9.2 billion. This sharp decline underscores the growing negative sentiment and the increasing dominance of sellers in the market.

Technical indicators paint a bleak picture for Pi Network's token. The Average Directional Index (ADX) stands at 18.3, signaling a weak and uncertain trend. However, a deeper analysis of the Directional Indicators (+DI and -DI) reveals that bearish momentum is currently dominant. Over the past two days, the +DI, which tracks bullish strength, has dropped from 23 to 16.1, while the -DI, which measures bearish strength, has surged from 19.6 to 26.2. This widening gap between the two indicators confirms that sellers are in control, suggesting that the downtrend is likely to continue in the short term.

Adding to the bearish outlook, the Chaikin Money Flow (CMF) has dipped to -0.14, its lowest reading in a week. The CMF measures the volume and intensity of buying versus selling, and a negative value indicates that capital is flowing out of the asset. This persistent negative CMF reading suggests that sellers are not only active but are maintaining their pressure. The market currently lacks strong accumulation, meaning buyers are not stepping in aggressively enough to reverse the trend. Unless buying volume picks up significantly, Pi Network's token is likely to remain under strain.

With sellers dominating, attention is now focused on the critical support level at $1.23. If Pi's price breaks below this mark, it could slide even further, potentially dropping under $1.20, a level not seen since February 22. On the other hand, if bulls manage to regain momentum, the immediate resistance levels sit at $1.57 and $1.82. A breakout above these points could hint at a possible trend reversal and open the door for Pi to retest the $2 mark. However, given the current market conditions, this scenario appears unlikely in the near term.

The Pi Network's dramatic drop serves as a stark reminder of how quickly sentiment can shift in the crypto market. While the project has built a large following, the token's value is currently being tested by a combination of technical weakness and sustained selling pressure. For now, the best move for investors might be caution. With the market trending bearish and key indicators pointing south, Pi's price could face further declines before any potential rebound. Traders and holders alike should monitor these support and resistance levels closely while keeping an eye on overall market sentiment.