Pi Network (PI) has been facing challenges in its attempt to rebound from recent setbacks. Despite efforts to surpass the $0.71 resistance point, the cryptocurrency is currently struggling to generate significant upward momentum.
Presently valued at $0.63, the future direction of PI remains uncertain, causing investor confidence to dwindle. The migration roadmap to the mainnet failed to instill enough trust to stem the outflow of funds from the network.
Investor interest in Pi Network has decreased, as indicated by the Chaikin Money Flow (CMF) indicator witnessing a sharp decline. The negativity is evident through the substantial withdrawal of funds from PI.
While the mainnet migration roadmap was anticipated to enhance the appeal of the cryptocurrency, it has not been sufficient to halt the ongoing outflows. The broader trend of declining interest, visible through the CMF, reflects investors pulling their investments from the platform in anticipation of further price drops.
The sentiment among PI investors has notably soured over the past month due to uncertainty about the token's value proposition, rapid loss of initial excitement surrounding its launch, ongoing volatility, and lack of clear utility. This uncertainty has deterred investors from holding onto their PI tokens, exacerbating the selling pressure.
As Pi Network struggles to sustain its price above the critical $0.61 support level, it is apparent that market sentiment is fragile. Without a significant driver, such as a strong use case or promising developments, Pi Network risks further price decline. The lack of a positive outlook is prompting investors to exit the market.
Presently, Pi Network is valued at $0.63, slightly above the $0.61 support level, yet remains vulnerable. If outflows persist and PI drops below $0.61, it could experience a significant decline to $0.51, nullifying the gains made in April.
The potential further decrease would extend losses for Pi Network, possibly lowering the price to around $0.50. The persistent outflows and negative sentiment surrounding PI may lead to a prolonged downtrend if the cryptocurrency fails to recover promptly.
Nevertheless, if Pi Network maintains its position above the $0.61 support level, it could target the $0.71 resistance level. Surpassing this level would indicate a recovery and potentially help PI reclaim some of its recent losses.