Pi Network (PI) has recently experienced a significant decline, with the price falling by 15% in just 24 hours. The altcoin is now inching closer to falling below $1.00 as investors have moved to secure their gains.
This downtrend is a result of a combination of market conditions and rising outflows, which have created significant selling pressure on the asset.
Pi Network Is Facing Outflows
The Chaikin Money Flow (CMF) indicator is reflecting the market’s weakening sentiment, showing a sharp downtick this week. At present, the CMF is hovering around the zero line, signaling that outflows are beginning to outweigh inflows. This trend is a bearish sign for Pi Network, as it indicates that investors are choosing to sell off their holdings to lock in profits.
If the CMF dips below the zero line, it would signal that outflows are fully dominating, which could exacerbate the sell-off. This shift would lead to even more downward pressure on the asset, prolonging the negative trend and pushing the price further down.
The overall market sentiment continues to reflect bearish conditions, with the Relative Strength Index (RSI) nearing the oversold threshold of 30.0. This suggests that Pi Network, along with other altcoins, is facing substantial selling pressure. The general market trend is pushing most cryptocurrencies down, and PI appears to be no exception.
The RSI level is a critical technical indicator, and its position indicates that Pi Network may be headed for a further decline. While the market continues to show weak bullish momentum, the lack of significant support and investor confidence could lead to PI price suffering in the short term.
PI Price Aims For Break Out
Currently, PI is trading at $1.14, a 15% drop from its previous value. The altcoin has fallen below its support level of $1.19 and is moving within a descending wedge pattern. This suggests that further downside movement is likely, with the asset testing its lower trendline.
If these bearish conditions persist, PI is likely to fall through the trendline and reach the support level of $0.92. This would bring PI closer to the critical $1.00 level, potentially triggering more selling from investors as the downward momentum builds. A drop below $1.00 would be concerning, as it would mark a significant loss for holders.
However, if PI manages to reclaim $1.19 as a support floor, the altcoin has a chance at recovery. A successful rebound above $1.19 could pave the way for a rise toward $1.43. This would help PI potentially break out of its current pattern and invalidate the bearish outlook.
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