Pi Network’s token has continued to underperform, trading sideways despite the crypto market’s bullish setup.
While the market rallied last week, with several assets reaching all-time highs and others climbing to multi-month peaks, PI remained in a range. With plunging interest in the altcoin, it shows little momentum to break out of its narrow range.
Investor Interest Fades as PI Trades Sideways and On-Chain Activity Drops
Currently trapped in a sideways trend, PI faces stiff resistance at $0.46 and a firm support level at $0.43. Unlike other assets riding the wave of renewed investor enthusiasm, PI continues to witness declining trading interest, as evidenced by a sharp drop in its on-chain trading volume.
According to Santiment, this has dropped by 21% in the past seven days, signaling waning demand and growing caution among investors.
A drop in trading volume means fewer investors are buying or selling the asset. It signals declining interest, lower liquidity, or general indecision in the market.
As with PI, when this happens during sideways price movement, it suggests a lack of strong conviction. Neither buyers nor sellers are dominating, creating a lull in momentum.
In addition, according to data from PiScan, the Pi Network is scheduled to unlock 95 million PI tokens over the next eight days, contributing to the bearish pressure on the token.
With traders already wary amid persistent price stagnation and declining volume, the token unlock could strengthen PI’s price stagnation or even trigger a breakdown below support at $0.43. This is because a large influx of tokens like this increases selling pressure, particularly in bearish conditions where demand is too weak to absorb the added supply.
PI’s Bearish Streak Deepens — All Eyes on $0.43 Support Level
An assessment of PI’s Elder-Ray Index on the daily chart confirms the bearish tilt in market sentiment. The indicator, which gauges the strength of bulls and bears in the market, has posted a negative value since July 12, highlighting a strong bearish presence.
If the current trend persists, a breakdown below the $0.43 support level appears increasingly likely, opening the door for a retest of PI’s all-time low at $0.40.
However, a renewed wave of buying interest could shift momentum. Should demand rebound, PI token price may overcome resistance at $0.46 and potentially rally toward the $0.50 mark.
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