Pi Network (PI) has experienced a significant drop of over 19% in the past week, maintaining its correction phase and trading below $2 since March 1. The market sentiment has been impacted by persistent selling pressure, with key indicators such as DMI and CMF indicating potential downside risks.
The EMA lines for PI are suggesting a potential death cross, which could result in a further decline towards $0.95 if crucial support levels are breached. However, there is a glimmer of hope as buyers may step in, leading to a potential recovery and an attempt to surpass $2, possibly aiming for new all-time highs above $3.
Recent data from PI's Directional Movement Index (DMI) reveals that sellers are still firmly in control despite a brief surge in buying pressure observed yesterday. The Average Directional Index (ADX) for PI has spiked to 34.29, indicating a strengthening price trend, whether bullish or bearish. Traders are closely monitoring the situation to gauge if the momentum will be sustained or if there will be a reversal in trend direction.
Furthermore, PI's Chaikin Money Flow (CMF) has hit all-time lows, currently standing at -0.19 after a rapid decline, reflecting an increase in selling pressure and capital outflows. The negative values on CMF suggest a dominant presence of sellers, with the potential to drive prices lower unless there is a resurgence in buying activity.
As the PI Network price hovers between the critical levels of $1.51 resistance and $1.23 support, there are indications of a bearish trend, with a looming possibility of a death cross which could intensify the selling pressure. In the event of a bearish crossover and a breach of the $1.23 support level, PI could witness a further decline, potentially dropping to $0.95.
On the flip side, a reversal in the trend could see PI testing the $1.51 resistance level, paving the way for a potential move towards $2. A strong rally might even propel PI above $3, achieving new all-time highs, despite recent criticisms from the Bybit CEO. The market remains dynamic and the future trajectory of PI Network is closely monitored by traders and enthusiasts alike.