Recent Decline in Pi Network’s Value Raises Concerns
The recent performance of Pi Network (PI) has caused unease among investors as the cryptocurrency has experienced a notable dip in value. Over the last 24 hours, PI has decreased by 2%, and analysts warn that it could potentially fall below the crucial support level of $0.22 if current trends continue.
Technical Analysis Indicates Short-Term Risks
In the past three days, Pi Network has struggled, raising concerns about its stability. On-chain data suggests an increase in supply pressure, particularly as Centralized Exchanges (CEX) report rising inflow rates. According to data from PiScan, user deposits through verified CEX under the Know Your Business (KYB) category have hit a total of 2.75 million PI tokens in the last 24 hours. This inflow significantly exceeds withdrawals of 1.76 million tokens, indicating a net daily outflow and suggesting that investors may be offloading some of their holdings.
Could Pi Network Drop Below the $0.22 Support Level?
The four-hour chart for PI/USD presents a bearish outlook, with the cryptocurrency losing 2% of its value recently. Currently, PI is trading at $0.2267, indicating a downward trajectory. Technical indicators reinforce this bearish sentiment, with the Relative Strength Index (RSI) hovering around 37, signaling a move towards oversold conditions if the trend persists. Additionally, MACD lines are situated in a bearish region.
If the current trend continues, PI risks falling below Monday’s low of $0.2204, with a significant support level around $0.1919. Conversely, should bullish momentum return, there is potential for PI to reclaim last week’s peak of $0.2841. A sustained bullish phase could see the cryptocurrency targeting the low from August 1 at $0.3220. However, given the prevailing market conditions, PI is expected to continue underperforming in the days ahead.
