Pi Token Faces Bearish Trend, Drops 4% in a Week

The PI token, associated with the Pi Network, has recently encountered resistance at the $0.64 price level. Despite attempts by bulls to drive the price higher, the lack of buying volume has made a recovery difficult. This trend was evident last week and has not changed significantly since then. The 1-day chart for PI/USDT shows a bearish trend, with the token closing at $0.479 on July 1, which is lower than its previous close of $0.5 on June 22. The Money Flow Index (MFI) has made higher lows, indicating a weakening of bearish pressure and a potential bullish divergence. However, the overall bias on the 1-day timeframe remains bearish, and the price would need to surpass the $0.64 resistance to shift the structure to a bullish one.

The token's momentum divergence suggests that a bullish reversal from the $0.48 level could occur. However, the moving averages indicate bearish momentum and are likely to act as dynamic resistance levels if PI attempts to recover, which has not yet begun. The On-Balance Volume (OBV) has been trending lower over the past month, implying relentless selling pressure that buyers have not been able to overcome. This trend suggests that traders should be cautious about going long on PI, despite the momentum divergence.

Despite the risks, there are reasons to consider a long position on PI. The 4-hour timeframe highlights a potential range formation from $0.48 to $0.63, with the MFI at 47, indicating a neutral market state. Given that the range low at $0.48 has been tested recently, it makes sense to go long with a tight stop-loss just below the low from a week ago at $0.47. A conservative take-profit target at the mid-range resistance of $0.558 could yield a 2.4 risk-to-reward move. However, this long setup could be affected if Bitcoin endures losses in the coming days, potentially changing the market-wide sentiment and sending PI sliding lower again.