Pi is nosediving! Just a day after opening its 100-million-dollar venture fund, the price of the cryptocurrency has crashed, losing a shocking 25 percent in these 24 hours. Temporary dip for this or something serious for the Pi project?
Despite this major initiative, the market response has been lackluster, raising concerns about the PI token’s short-term price trajectory.
PI’s Rally at Risk Amid Growing Bearish Control
Will the PI/USD descent begin with a crash? The one-day chart is giving warning signals, hinting that the current downtrend could still have more ways to go down. Currently teetering just below its 20-day exponential moving average (EMA), PI sits on the edge. A break beneath this crucial level could confirm the end of any bullish activity that was still remaining for the market.
PI 20-Day EMA. Source: TradingView
Is the market turning sour? Observe the 20-day EMA. This line in the sand tracks the average price that an asset has witnessed in the previous 20 trading days, with emphasis placed on the latest movements. Should the price threaten to piercebelowthis level, think of it as a red flashing signal: short-term momentum is speeding away, and a pile of bearish clouds might dangerously begin to form.
The move of Rally of PI from May 8th to May 13th might also undergo difficult conditions. Below the 20-day EMA in a built-in sequence of ups and downs-the decline would be immediate and large.
Power dynamics have been shifted. Currently, the PI’s Balance of Power (BoP) is bleeding at -0.14, courses of capital moving fast towards exits as investors dump their positions. On the ground, clear bearishness marks the market pulse.
PI BoP. Source: TradingView
Before the sack and looting of a market, we have a little informative scene preceding the Balance of Power indicator. When negative is an indication of a seller’s dominance, they conspire as currently. Sellers try to wrest control from the buyers, forcing prices down. Watching this tug-of-war will become interesting because we have only just had a start.
PI Risks Breakdown Toward $0.40
PI rides on a knife-edge. The 20-day EMA, earlier a staunch support at $0.80, is no longer holding. A clean break below it will freeze the air: bears become kings. Do keep an eye on it-the recent bounces from this dynamic support, though hopeful and bullish, might soon turn into a tale.
“A break under this line throws a wrench in PI. Consider it the last stand by the bulls; if even this fails, it confirms the bearish grasp on the market and that anything close to freefall is possible. With selling pressure mounting, a deeper correction looms large.”
In this scenario, PI could revisit its all-time low of $0.40.
PI Price Analysis. Source: TradingView
However, if the bulls regain market dominance, they could drive PI’s price toward $1.01.
Thanks for reading PI Network’s 25% Drop Sparks Fears of Resuming Prolonged Downtrend
