Pi Network’s price has recently experienced a steep 40% decline, marking a troubling period for the altcoin. This sudden downturn is making it increasingly difficult for Pi Network to recover its March losses.
With a negative correlation between Pi and Bitcoin, recovery prospects remain slim, pushing Pi Network toward further declines.
Pi Network Pulls Away From Bitcoin
Pi Network’s connection with Bitcoin, once a source of strength, has weakened significantly. The correlation has dropped to a negative 0.16, signaling that Pi has decoupled from Bitcoin. This is particularly concerning as Bitcoin’s price continues to show resilience, hovering around $106,000, and is on the brink of potentially reaching a new all-time high.
The decoupling from Bitcoin suggests that Pi Network is facing a difficult battle ahead. Traditionally, altcoins like Pi tend to follow Bitcoin’s lead, especially when Bitcoin shows bullish tendencies. With Pi Network’s decoupling, it has become more vulnerable to any bearish triggers.
Technical indicators are supporting a bearish outlook for Pi Network. The MACD, which tracks momentum and trend changes, recently showed its first bearish crossover in over a month. This shift signals that Pi Network’s overall momentum is turning negative.
Given that Pi Network has failed to capitalize on Bitcoin’s bullish performance, investor sentiment could remain low. Additionally, the market’s tendency to follow major trends means that Pi’s isolated performance will struggle to regain momentum without external support.
PI Price Picks A Different Direction
Pi Network’s price is currently at $0.73, after noting a crash of 40% in the past week. This marks a crucial moment for the altcoin as it continues to face challenges in recovering from its March losses. Without a clear catalyst, Pi Network may struggle to break free from its current downtrend, making further declines more likely.
The current market sentiment suggests that Pi Network could drop below the $0.71 support level. A breakdown below this level could lead to further losses, pushing the price down to $0.61. This would extend the losses for investors, further complicating any potential recovery for Pi Network.
However, if the broader market experiences a bull run, Pi Network could see increased demand from investors. Should this happen, Pi Network may rise above the $0.78 resistance and push toward $0.87. Such a recovery would bring Pi Network closer to the $1.00 mark, invalidating the current bearish trend and offering hope for investors.
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