Pi Price Drops 10% Despite New Features

Pi (PI) price has turned bearish despite the recent launch of two significant features, signaling a challenging phase for investors. The cryptocurrency initially climbed above the 20-day exponential moving average (EMA) at $0.56, signaling short-term bullish attempts. However, the inability to break through the 50-day simple moving average (SMA) resistance at $0.66 has reinforced selling pressure. This resistance level remains a significant barrier for bulls aiming to regain control.

Currently, the price has retreated below the 20-day EMA, confirming that bears dominate the market. Support levels at $0.47 and $0.40 are critical to monitor, as a failure to hold these could lead to further declines. Notably, the relative strength index (RSI) is beginning to show early signs of positive divergence, which may indicate a potential shift in momentum if buyers step in.

On the 4-hour chart, the 20-EMA is trending downward, and the RSI approaches oversold territory, underscoring bearish dominance. Buyers are likely to attempt a relief rally near the $0.47 support level. However, resistance at the 20-EMA could pose a significant challenge. Should the price fail to break above this moving average, the risk of a breakdown below $0.47 increases, potentially pushing PI toward the next support at $0.40.

Conversely, a successful rebound above the 20-EMA would signal renewed buying interest and could set the stage for a test of the 50-day SMA resistance. Surpassing this level might open the path for PI to climb toward $0.60, offering a more optimistic scenario for traders and investors.

Market sentiment remains cautious as the recent feature releases have not generated the expected bullish momentum. The persistent selling pressure near key resistance levels suggests that traders are awaiting stronger catalysts before committing to long positions. Monitoring volume trends alongside price action will be essential to validate any potential breakout or breakdown.

Technical indicators such as the moving averages and RSI provide valuable insights into the current market dynamics. The downward slope of the moving averages reflects ongoing bearish pressure, while the RSI’s early positive divergence could serve as an early warning for a possible trend reversal. Traders should watch for confirmation signals before making decisive moves.

Pi’s price action following the release of major features highlights the challenges of sustaining bullish momentum in a volatile crypto market. Key support at $0.47 and resistance near $0.66 will be pivotal in determining the next directional move. While bearish forces currently dominate, early technical signals suggest a potential rebound if buyers regain control. Investors and traders should closely monitor these levels and technical indicators to navigate upcoming market developments effectively.