The downward price momentum increases as the Pi Network (PI) is at risk of dropping below $1

Pi Network (PI) reached a record market capitalization of 19.2 billion USD on February 26, but has since dropped to 9.2 billion USD as selling pressure increased.

PI has adjusted by 22% over the past two weeks and further decreased by up to 17% in just the last 24 hours. Negative sentiment has increased due to a strong sell-off after the KYC deadline. Now, let's join Bitcoin Magazine to explore the current technical setup and what may happen next for PI.

Pi Network DMI shows that sellers are in control

The DMI chart of PI shows that the ADX is at 18.3, a level it has maintained since yesterday, signaling a weak trend.

The flat ADX indicator shows that the current downtrend is losing momentum, but it is still present as the indicator remains below the important threshold of 25.

The (ADX) average directional index measures the strength of a trend, with values above 25 indicating a strong trend and values below 20 indicating a weak or range-bound market.

PI DMI | Source: TradingViewCurrently, PI's +DI has decreased to 16.1 from 23 two days ago, while -DI has increased to 26.2 from 19.6 yesterday.

The increasing distance between these +DI and -DI lines indicates that sellers are regaining control, strengthening in the current downtrend.

Unless +DI starts to recover and ADX rises above 20, PI may continue to face downward pressure in the short term.

PI CMF is still in the negative zone

PI's CMF is currently at -0.14 and has remained negative for the past two days, following a recent peak of 0.15 that occurred four days ago.

This marks a clear shift in buying and selling momentum, as the indicator is currently at its lowest level of the week.

Chaikin Money Flow (CMF) measures the flow of money in and out of an asset, combining price and volume to assess buying or selling pressure.

PI CMF | Source: TradingViewCMF above 0 indicates accumulation (buying pressure), while CMF below 0 indicates distribution (selling pressure).

With PI's CMF currently at -0.14, this indicates that sellers have gained control, adding further weight to the ongoing downtrend.

Negative indicators may signal market weakness unless buying volume increases in the short term.

Will Pi Network soon drop below $1?

PI has been under pressure in recent days following criticism surrounding the launch of its .pi domain, which has increased negative sentiment. Previously, the network faced a major sell-off after the mainnet migration deadline.

The current correction trend is still ongoing, with PI having tested the $1.23 support level and broken through it. PI has now dropped below $1.20 for the first time since February 22 and is trading around $1.18, after recovering from the local low of $1.04.

Price Analysis of PI | Source: TradingViewHowever, if the PI price regains positive momentum, it could recover and challenge the resistance level at $1.57. A breakout above this level could pave the way for further price increases towards $1.82 and $1.98.

If the price uptrend accelerates, PI may surpass the $2 level for the first time since March 1, signaling a trend reversal.

You can check the price of PI here.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making decisions. We are not responsible for your investment decisions.

• The .pi domain is active, but Pi Network users are still concerned
• Pi Network celebrates its 6th anniversary, Pi Coin price continues to decline
• The dominance of BTC has been steadily increasing since 2023, is the altcoin season a thing of the past?

Vietnamese Strength

@media only screen and (min-width: 0px) and (min-height: 0px) { div[id^="wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb"] { width:320px; height: 100px; } } @media only screen and (min-width: 728px) and (min-height: 0px) { div[id^="wrapper-sevio-d89f58f5-7b63-40be-98c0-6b1fd62584fb"] { width: 728px; height: 90px; } }