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Pi Network faces significant bearish pressure as its market cap dwindles dramatically, highlighting substantial selling activity among investors.
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Recent data indicates that despite a peak market cap of $19 billion earlier this year, Pi’s current valuation is struggling at just $5.5 billion as of last week.
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As highlighted by market analysts, “The surge in negative directional movement indicators confirms the prevailing downtrend, with sellers not showing signs of relinquishing control.”
Pi Network’s value continues to decline sharply, now at $5.5 billion, as bearish trends dominate the market amidst unprecedented selling pressures.
Technical Indicators Confirm Bearish Sentiment in Pi Network
Recent technical analyses of Pi Network reveal that market sentiment has shifted firmly into bearish territory, as the asset continues to slump from its mid-year peak. The volatility indicator known as the Average Directional Index (ADX) has surged to 34.99, signaling an increasingly potent downtrend.
High readings of the ADX, especially above 25, typically suggest a robust trend; however, discerning the direction of that trend remains crucial. At present, Pi Network’s sentiment is decidedly negative, as both the -DI and +DI indicators suggest overwhelming selling pressure amidst waning buyer interest.
The narrowing gap between these indicators underscores the stark contrast between the bearish and bullish forces currently at play, with the -DI indicator rising to 31.55. This going against the +DI, which fell to 9, further solidifies the prevailing bearish momentum.
Chaikin Money Flow Indicates Persistent Outflows
In addition to the DMI analysis, the Chaikin Money Flow (CMF) for Pi Network is currently exhibiting levels unheard of previously, sitting at -0.23. This negative value signals that selling pressure has not only increased but has intensified over the last few weeks.
The CMF serves as a key metric for assessing market liquidity and confirms that investor capital is flowing out of Pi Network consistently. With such a sustained outflow, maintaining price support has become increasingly challenging.
Market analysts suggest that without a significant uptick in buying activity or news to rekindle investor interest, the current bearish phase may continue to exacerbate the drop in price.
Key Support and Resistance Levels to Monitor
An examination of Pi Network’s price chart reveals a critical support level around $0.718, which has held the price in previous downturns. Should this level not maintain its integrity, the price could plummet to $0.62, marking an alarming breach and setting a new low since late February.
Conversely, if the network can ford any negative momentum, achieving a breakthrough at key resistance around $1.05 would allow for a potential path to reach $1.23. An upturn could manifest further price recovery towards $1.79, which would indicate a significant rebound from current trading levels.
Conclusion
Pi Network is presently in a challenging situation characterized by a sustained downtrend driven by strong selling forces and minimal buying interest. As market players closely monitor key support levels, it remains crucial for investors to stay informed about potential shifts in market sentiment. Whether Pi can reclaim its momentum and stage a recovery will depend on broader market conditions and upcoming developments within the cryptocurrency space.
