PI continues to trend downward, dropping 5% in the past 24 hours despite the overall market recovery in recent days.

The decline of this altcoin indicates weakening buying pressure as traders seem to shift their attention away from PI.

Pi Struggles as Market Participation Decreases

Key technical indicators reinforce the downward price outlook for Pi. Its On-Balance-Volume (OBV) index, which tracks buying and selling pressure, has been continuously declining, showing a decrease in market participation and liquidation.

At the time of writing, PI's OBV is at an All-Time-Low of -845.93 million, dropping over 2000% since the beginning of March.

When an asset's OBV drops this sharply, it indicates a decline in buying activity and increased dumping. This suggests that more PI traders are selling off assets rather than accumulating, increasing downward pressure on its price.

Moreover, PI remains within a descending parallel channel, a pattern reflecting its downward trend. According to indicators from the PI/USD daily chart, PI has been trading in this price decline pattern since reaching its All-Time-High of $3 on February 26.

A descending parallel channel forms when an asset's price moves between two downward-sloping parallel trend lines. This structure shows a consistent pattern of lower highs and lower dips, suggesting a sustained downward trend. Here, token sellers maintain control and prevent significant upward momentum.

This pattern suggests that PI's price may continue to decline until it breaks the channel or finds strong support.

Pi at Risk of Further Decline as Bears Attempt to Pull Price Below $0.62

PI's increasing selling pressure puts it at risk of breaking below the descending parallel channel. If this occurs, the token's downward trend will accelerate, pushing its price down to $0.62.

However, if buyers regain the advantage and buying activity surges, PI could reverse its current trend and increase to $1.13.