Cryptocurrency Market Faces Major Downturn of $160 Billion in 24 Hours
In a significant turn of events, the cryptocurrency market has witnessed a staggering $160 billion drop in total market capitalization within the last day. This downturn has had a particularly harsh impact on PI, which has seen a 24% decrease in its value.
Despite the bleak outlook, there are indications from technical analysis that PI, a popular altcoin, may be poised for a potential rebound.
Signs of Seller Fatigue in PI's Market Decline
Analyzing PI's hourly chart, it is evident that the Relative Strength Index (RSI) is approaching the oversold range, implying that selling pressure could be nearing exhaustion. The current RSI stands at 31.36 at the time of writing.
The RSI of an asset serves as a gauge of its overbought and oversold market conditions, with values above 70 indicating overbought conditions and values below 30 suggesting oversold conditions. With PI's RSI hovering at 31.36, it suggests weakening selling pressure and the possibility of a price recovery if buying interest emerges.
Furthermore, PI's price has recently dipped below the lower Bollinger Bands line, further signaling a potential exhaustion of selling activity. The Bollinger Bands indicator, which includes a middle-moving average line and two outer bands that adjust based on price movements, indicates extreme deviations from the average price when breached.
Critical Juncture for PI—Potential Breakout or Further Decline
If a resurgence in demand for PI materializes, a rally towards its previous all-time high of $3 achieved last Thursday could be on the horizon, marking a 44% increase from its current price of $2.08. However, overcoming the resistance level at $2.56 is crucial for this upward movement to unfold.
On the flip side, continued downward momentum may push PI's price towards $1.62 if new demand fails to materialize.
As the cryptocurrency market navigates through these turbulent times, the fate of PI hangs in the balance, poised for either a remarkable recovery or further decline.