In the past week, the price of PI, the native token of the Pi Network, has dropped by 22%, hitting a low of $0.61. This decline is part of a broader trend in the crypto market. The market capitalization of cryptocurrencies worldwide has decreased by more than 5%, amounting to a loss of over $170 billion. This market downturn has led to a decrease in confidence among investors, resulting in a recent drop in PI's value.

The negative trend in the value of PI is evident in the BBTrend indicator, which has shown a series of red histogram bars, indicating a growing bearish momentum. The indicator currently stands at -4.52. The BBTrend evaluates the strength and direction of a trend by analyzing the expansion and contraction of Bollinger Bands. A negative BBTrend suggests that PI's price consistently closes near the lower Bollinger Band, signaling sustained selling pressure and the possibility of a further decline in price.

The Smart Money Index (SMI) for PI has also declined, indicating a withdrawal of institutional investors from the market. This decrease in smart money investment may foreshadow additional price decreases, as it reflects diminished confidence among influential investors.

The escalating selling pressure on PI suggests that the token could face more losses in the near future. If this trend continues, there is a risk of PI falling below its crucial support level of $0.55. The failure of bulls to defend this support could result in PI revisiting its all-time low of $0.40. However, an increase in demand for PI could prevent such a scenario, potentially pushing its price up to $0.86.

In conclusion, the current bearish trend in the crypto market has impacted the value of PI negatively, with indicators pointing towards a possible further decline.