Pi Network Shows Bearish Trends Amid 40% Decline; Recovery Depends on Broader Market Dynamics

• Pi Network faces a 40% crash, with its price currently at $0.73, decoupling from Bitcoin and showing a negative correlation.

• MACD’s bearish crossover signals further downside risk for Pi Network, pushing it toward the $0.61 level if support at $0.71 fails.

• Recovery prospects depend on a broader market bull run, which could drive Pi Network to $0.87, but the bearish outlook prevails for now.

Pi Network’s price has plummeted 40% recently, signaling a challenging recovery ahead. Key technical indicators point to further declines despite potential market rallies.

Pi Network Pulls Away From Bitcoin

Pi Network’s connection with Bitcoin, once a source of strength, has weakened significantly. The correlation has dropped to a negative 0.16, signaling that Pi has decoupled from Bitcoin. This is particularly concerning as Bitcoin’s price continues to show resilience, hovering around $106,000, and is on the brink of potentially reaching a new all-time high.

The decoupling from Bitcoin suggests that Pi Network is facing a difficult battle ahead. Traditionally, altcoins like Pi tend to follow Bitcoin’s lead, especially when Bitcoin shows bullish tendencies. With Pi Network’s decoupling, it has become more vulnerable to any bearish triggers.

Pi Network Correlation With Bitcoin. Source: TradingView

Technical indicators are supporting a bearish outlook for Pi Network. The MACD, which tracks momentum and trend changes, recently showed its first bearish crossover in over a month. This shift signals that Pi Network’s overall momentum is turning negative.

Given that Pi Network has failed to capitalize on Bitcoin’s bullish performance, investor sentiment could remain low. Additionally, the market’s tendency to follow major trends means that Pi’s isolated performance will struggle to regain momentum without external support.

Pi Network MACD. Source: TradingView

PI Price Picks A Different Direction

Pi Network’s price is currently at $0.73, after noting a crash of 40% in the past week. This marks a crucial moment for the altcoin as it continues to face challenges in recovering from its March losses. Without a clear catalyst, Pi Network may struggle to break free from its current downtrend, making further declines more likely.

The current market sentiment suggests that Pi Network could drop below the $0.71 support level. A breakdown below this level could lead to further losses, pushing the price down to $0.61. This would extend the losses for investors, further complicating any potential recovery for Pi Network.

Pi Network Price Analysis. Source: TradingView

However, if the broader market experiences a bull run, Pi Network could see increased demand from investors. Should this happen, Pi Network may rise above the $0.78 resistance and push toward $0.87. Such a recovery would bring Pi Network closer to the $1.00 mark, invalidating the current bearish trend and offering hope for investors.

Conclusion

In conclusion, Pi Network’s recent struggles illustrate the complexities of altcoin performance in a volatile market. With the correlation to Bitcoin weakening and bearish indicators in play, caution is advised. Future recovery depends heavily on market conditions and the potential for broader digital asset rallies, emphasizing the importance of ongoing monitoring for investors.