Pi Network (PI) has been steadily declining since February 26, losing 72% of its value as pessimistic sentiment continues to weigh on the token.
Pessimistic pressure continues to increase, suggesting it may be preparing to enter a new recession phase.
Analyzing the one-day chart of PI shows that holders continue to distribute. At the current moment, PI's Balance of Power (BoP) indicator is at a negative level, reflecting selling pressure in the market.
The BoP indicator measures the strength of buying pressure versus selling pressure by comparing the closing price with the trading range over a certain period. When BOP is negative, it indicates that sellers are dominating the market, showing downward pressure on the asset's price.
Furthermore, PI's Chaikin Money Flow (CMF) setup supports the pessimistic outlook. Currently, this number is below the central line at -0.12.
The CMF indicator measures the buying and selling pressure of an asset. A negative CMF indicates that the asset is experiencing more selling pressure than buying pressure. This means PI traders are distributing rather than accumulating, signaling pessimistic sentiment and confirming the token's price decline.
PI is currently trading around $0.63, lower than the dynamic support formed at $0.93 by its Super Trend indicator.
The Super Trend indicator helps traders determine market 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 downward trend and suggests potential weakness. If PI's decline becomes stronger, it could return to the all-time low (ATL) of $0.40.
However, if demand returns, PI could break through the resistance level at $0.86 and surge to $1.01.
You can view PI's price here.
Disclaimer: The article is for informational purposes only, not investment advice. Investors should thoroughly research before making decisions. We are not responsible for your investment choices.
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