If you’re following the volatile cryptocurrency market, Pi Network (PI) has become an intriguing subject recently. In the past few days, PI has seen sharp declines, with the token trading below $0.1600—down almost 1% in the last 24 hours. Let’s dive into the latest analysis and what this means for traders and investors.
Why is PI Underperforming?
Recent data shows the confidence of both holders and the core team in Pi Network has declined significantly. According to reports from PiScan, centralized exchanges recorded a net outflow of 1.76 million PI tokens within 24 hours, and the Pi core team wallets saw an even greater outflow of 8.41 million tokens. These movements have added significant selling pressure to the cryptocurrency, causing investors to offload their holdings.
Moreover, PI’s performance mirrors the struggles faced by other key altcoins like XRP, ETH, and SOL. The total market cap for altcoins has failed to rebound, making this a cautious phase for investors, signaled by declining volatility and range-bound trading.
Technical Indicators Signal More Challenges Ahead
The 4-hour PI/USDT chart is currently bearish, reflecting the broader market sentiment. PI is sitting precariously above its December 18 low of $0.1533 and struggling to maintain bullish momentum. Key technical indicators like the Relative Strength Index (RSI) stand at 46, suggesting oversold conditions and waning bullish pressure. Meanwhile, the Moving Average Convergence Divergence (MACD) remains below the neutral line, highlighting the continuation of bearish trends.
If the current bearish momentum persists, PI could test critical support levels. A daily close below $0.1533 may open the doors for a retest of the $0.1450 weekend low and could even dip to the major support zone around $0.1320. Conversely, if bulls regain control in the short term, PI could rally towards the 50-day Exponential Moving Average (EMA) at $0.1920. However, a resistance level at $0.1780 may prove to be a significant hurdle.
Investing in PI: Risks and Opportunities
With high volatility and decreased confidence, Pi Network (PI) represents both risks and opportunities. As the cryptocurrency follows the movements of other major altcoins, traders should monitor market sentiment and technical indicators closely to make informed decisions. If you’re considering diversifying your portfolio, tools like eToro, a leading platform for cryptocurrency trading, can provide advanced features like real-time alerts and trading strategies. Check out eToro here.
Conclusion
Pi Network’s bearish trends highlight the challenges altcoin investors face in 2023. Traders should watch critical support and resistance levels closely as they navigate this uncertain phase. Whether the coin rebounds or suffers further declines depends heavily on market dynamics and investor sentiment. Stay tuned for more updates to stay ahead in the ever-changing world of cryptocurrency.
