Pi Network (PI) has experienced a decline of about 10% in the past day, with various indicators suggesting an increase in bearish pressure. The Directional Movement Index (DMI) shows a transition from an uptrend to a downtrend, while the Chaikin Money Flow (CMF) data indicates a rise in outflows.
Moreover, the Exponential Moving Average (EMA) lines are indicating a potential death cross, which could result in further losses for PI. This analysis provides insights into the current trends for PI in the short term.
The DMI chart for Pi Network shows a significant shift in momentum, where the Average Directional Index (ADX) has decreased from 43.68 to 39.17 recently. A value of over 25 on the ADX typically signifies a strong trend. Despite the ADX still indicating solid momentum, the decrease in ADX combined with the shift from an uptrend to a downtrend suggests waning bullish strength and increasing bearish influence.
Furthermore, the Directional Indicator (+DI) has notably decreased from 22.11 to 13.29, while the (-DI) has surged from 11.32 to 30.95. This difference signifies that sellers have gained control, leading to a potential continuation of downward movement for PI unless there is a notable reversal in these indicators.
The CMF for Pi Network has dropped to -0.13 from 0.07, showcasing a significant increase in outflows and selling pressure. This change may indicate diminishing demand and buyer confidence alongside declining prices and weakening momentum indicators, potentially leading to sustained bearish pressure on PI.
Additionally, the EMA lines suggest a possible death cross, which could result in further downward movement for PI. If confirmed, this bearish signal might push PI to retest the support level at $0.54, and a breach of this level could potentially lead to a move below $0.50. However, a reversal in the trend accompanied by increased buying activity could strengthen PI's price and drive it towards the resistance level at $0.66, signaling renewed bullish momentum. Subsequent targets to watch for are $0.789, which would test the strength of the recovery.