Pi Network has recently witnessed a significant 40% drop in its price, indicating a challenging period for the altcoin. This sudden decline is posing obstacles for Pi Network to bounce back from its losses in March. The link between Pi and Bitcoin has turned negative, diminishing the chances of recovery for Pi Network and pushing it towards further price declines.

The diminishing correlation between Pi Network and Bitcoin, which was once a strength, has weakened, with the correlation reaching a negative 0.16. This shows that Pi has become disconnected from Bitcoin. The issue is compounded as Bitcoin remains resilient, maintaining a price near $106,000, on the verge of potentially setting a new all-time high. The detachment from Bitcoin puts Pi Network in a tough position, as altcoins like Pi typically follow Bitcoin's movements, especially during bullish trends. Pi's separation from Bitcoin exposes it to increased risks from bearish triggers.

Technical indicators are pointing towards a bearish outlook for Pi Network, with the MACD recording its first bearish crossover in more than a month, indicating a shift towards negative momentum. Pi Network's failure to capitalize on Bitcoin's bullish performance might keep investor sentiment low. Without external support and being unable to align with major market trends, Pi's isolated performance may struggle to regain momentum.

Pi Network's current price stands at $0.73 following a recent 40% dip, posing a critical moment for the altcoin as it grapples with difficulties in recovering from its March losses. Unless a significant catalyst emerges, Pi Network may find it challenging to reverse its current downward trend, increasing the likelihood of further price drops.

Market sentiment hints at a possible drop below the $0.71 support level for Pi Network, leading to additional losses that could drive the price down to $0.61. Such a scenario would extend losses for investors, complicating any potential recovery for Pi Network. Alternatively, in the event of an overall market uptrend, Pi Network could witness heightened investor demand. This could push the price above the $0.78 resistance level towards $0.87, potentially bringing Pi Network closer to the $1.00 milestone. This recovery would invalidate the current bearish trend, offering a glimmer of hope for investors.