PI has experienced a consistent decrease in its value since February 26, dropping by 72% due to prevailing negative market sentiment.
The downward trend in the PI token suggests that it may soon witness another phase of decline.
Concerns regarding a fresh decline in PI Network are arising, as indicated by the ongoing pressure from bearish investors.
Upon examining the one-day chart for PI/USD, it is evident that holders of the token are persistently engaging in selling activities. The Balance of Power (BoP) for PI is currently in the negative zone, emphasizing the prevalence of selling pressure in the market.
The BoP indicator gauges the strength of buying compared to selling pressure by analyzing the closing price relative to the trading range within a specified period. A negative BoP signifies that sellers are influencing the market, indicating a potential downward trajectory for the asset's value.
Additionally, the configuration of the Chaikin Money Flow (CMF) for PI aligns with this pessimistic outlook. Currently situated below the central line at -0.12, the CMF signals a negative sentiment prevailing in the market.
The CMF indicator assesses the buying and selling pressure of an asset. A negative CMF reading suggests higher selling pressure than buying pressure, indicating that PI traders are distributing rather than accumulating. This reinforces the bearish sentiment and affirms the downward momentum in the token's price.
Although sellers continue to exert control over PI, the possibility of a recovery to $1.01 persists. Presently, PI is trading at $0.63, positioned below the dynamic support level at $0.93 outlined by the Super Trend indicator.
The Super Trend indicator aids traders in determining the market's direction by plotting a line above or below the price chart based on the asset's volatility. Trading below the Super Trend line implies a bearish trend and hints at a potential further decline, possibly revisiting the all-time low of $0.40.
Nevertheless, if demand increases in the PI market, the price could surpass the resistance level at $0.86 and rally towards $1.01.