Pi Network has been facing growing investor concern, primarily due to a consistent decline in the number of active holders. Over the past month, altcoin has noted that most investors are exiting, with fewer entering the network to replace them.
This lack of growth in holder numbers could be a red flag for the cryptocurrency’s price movement going forward.
Pi Network Holders Are Skeptical
According to recent Holderscan data, Pi Network has struggled to maintain its investor base. Over the last month, the altcoin has seen a steady number of exits, and the total number of holders remains around 14,952. Despite some minor fluctuations, the lack of new investors entering the network has created an environment of skepticism.
The lack of investor engagement in the second half of May has contributed to growing bearish sentiment, as many traders are uncertain about the altcoin’s future. While smaller dips and withdrawals may not seem alarming at first, the cumulative effect of these exits could weaken Pi.
Looking at Pi Network’s macro momentum, technical indicators point to significant bearish pressure. The Relative Strength Index (RSI) has remained below the neutral zone, suggesting that the altcoin is experiencing downward momentum. This is compounded by the broader market cues, which are also showing signs of weakness.
With the RSI below the neutral level, Pi Network appears to be at a crossroads, where any shift in sentiment could result in further price declines. Investors may be hesitant to enter or hold their positions in a market that is not showing strong bullish signals. These factors are likely to weigh heavily on Pi Network’s short-term prospects.
PI Price Awaits A Boost
Currently, Pi Network’s price sits at $0.64, holding above the crucial support level of $0.61. However, the 50-day Exponential Moving Average (EMA) is acting as a resistance level, adding further pressure to the price. As the market sentiment continues to be bearish, Pi Network may struggle to maintain its current position.
If the negative trends persist, Pi Network’s price could easily fall through the $0.61 support level, pushing it toward the next major support at $0.57 or lower. This would represent a more significant correction, exacerbating the current lack of market confidence. The 50-day EMA’s resistance could continue to hinder any price recovery unless new factors come into play.
The only way to invalidate this bearish scenario is if Pi Network manages to regain momentum and bounce off the $0.61 support level. If this occurs, the altcoin could rise back toward $0.71 and potentially breach it, moving towards $0.78. However, this will require a shift in market sentiment and a re-engagement from investors, which seems uncertain at the moment.
Disclaimer
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