Pi Network Faces Bearish Pressure Amid 61% Monthly Loss and Technical Indicators Suggest Ongoing Downtrend

• Pi Network (PI) is grappling with significant bearish momentum, witnessing a staggering 61% decline over the last month amid persistent selling pressure.

• The recent integration with the Telegram Crypto Wallet has not significantly aided Pi’s price recovery, as negative market sentiment dominates.

• TradingView indicates that the BBTrend remains severely negative, with a reading of -22.34, suggesting ongoing challenges for PI as it struggles to attract buyers.

Explore the latest developments in Pi Network’s price struggle as it faces severe bearish pressure, insights into market trends, and critical support levels.

Persistent Bearish Sentiment Holds Pi Network Back

Over the last month, Pi Network (PI) has been under substantial pressure, experiencing a 61% drop in price, as the market continues to exhibit strong bearish trends.

Despite the promising partnership with the Telegram Crypto Wallet aimed at enhancing accessibility, the anticipated revitalization in investor interest has been slow to materialize. Market indicators, such as the BBTrend, signal that the bearish trend remains firmly in place, underscoring the challenges ahead.

The negative BBTrend has persisted for twelve consecutive days, reflecting broader concerns among investors about the network’s ability to recover quickly from this downturn. Market analysts recommend close monitoring of these indicators as PI approaches critical support levels.

Source: TradingView

The BBTrend, or Bollinger Band Trend, serves as a momentum indicator to assess the strength and direction of PI’s price action. Currently, the BBTrend reading of -22.34 underlines the prevailing skeptical sentiment that continues to push market prices lower.

If this negative trend does not reverse soon, Pi Network may continue to struggle, with potential ramifications for existing investors holding positions.

Relative Strength Index Shows Limited Recovery Signs

Pi Network’s Relative Strength Index (RSI) has recently exhibited minor signs of recovery, bouncing to 40.45 from an oversold low of 23.8.

This uptick, indicative of reduced selling pressure, nonetheless keeps the RSI below the neutral threshold of 50, suggesting insufficient bullish momentum to catalyze a meaningful price recovery.

The current market situation demonstrates a hesitance among buyers, leaving Pi Network susceptible to further fluctuations or consolidation in price.

Source: TradingView

The RSI is a momentum oscillator utilized for evaluating price movements. With the value of 40.45 indicating a neutral-to-bearish condition, it suggests that while there may be a slow improvement, significant buying pressure is yet to materialize.

A movement beyond the bullish threshold of 50 would be necessary for a genuine reversal, yet this milestone has proven elusive over recent weeks.

Market Outlook: Key Support and Resistance Levels

The price of PI currently operates within a notable downtrend, characterized by the structure of its Exponential Moving Averages (EMAs), where short-term averages continue to trail below long-term averages. This pattern is indicative of sustained selling pressure as the market adjusts.

The near-term outlook suggests that if the downward trend persists, Pi Network could retest critical support at $0.718. Should this level fail to hold, the price could potentially slide towards $0.62, exacerbating the current market situation.

Source: TradingView

Conversely, signals of a potential rebound in buying pressure remain present; should bullish momentum gather strength, PI might aim to break through resistance at $1.05, which would signal a shift in market sentiment and could usher in further upward movement.

Conclusion

As Pi Network navigates through this tumultuous period, its trajectory remains significantly influenced by market sentiment and technical indicators. With a continued bearish trend prevalent in most signals, investors should proceed cautiously. The key takeaway is that close attention to support and resistance levels, alongside momentum indicators like the RSI and BBTrend, will be pertinent in assessing future price action for Pi Network.