Pi Network Price Poised for 27% Drop, Here’s What to Watch

key insights:

• Pi Network price appears bearish as it has failed to hold the key support level of $0.77 and is poised for a significant price decline in the coming days.
• Pi Coin has formed a textbook-style inverted flag and pole price action pattern on the 4-hour timeframe, indicating further downside potential.
• Despite launching $100 million worth of funds through Pi Venture, the asset has continued to decline in price, raising questions about when Pi Coin will pause its downward momentum.

The Pi Network price has been hit hard in the ongoing correction and has now formed a bearish pattern, indicating that the asset could continue its downward momentum. Recent days have been unfavorable for Pi Coin holders, as the asset has recorded a price decline of over 56% from its recent high.

Current Price Momentum

At press time, Pi Coin was trading near $0.72 and had recorded a price decline of over 3.15% in the past 24 hours. During the same period, investor and trader participation notably dropped, leading to a 55% fall in trading volume, as revealed by CoinMarketCap data.

The potential reasons behind this significant drop in trading volume are the current market sentiment, the formation of a bearish price action pattern, and the continuous token unlock.

Pi Network Price Action and Key Levels

According to expert technical analysis, Pi Network price appears set to continue its downward momentum as it has broken a key support level. Moreover, on the four-hour timeframe, the asset has formed a bearish inverted flag and pole price action pattern and is currently on the verge of a breakdown.

Based on recent price action and past performance, if the Pi Network price continues to decline and breaches the pattern by closing a daily candle below the $0.705 level, there is a strong possibility that Pi Coin could see a price decline of over 27% until it reaches the $0.57 level in the future.

On the other hand, if the Pi Network price holds above the $0.705 level, there is a strong possibility that Pi will show a reversal and rise toward the $0.81 level, which is the next resistance level.

Bearish Signal from Technical Indicators

With the recent price decline, Pi Coin’s Relative Strength Index (RSI) stands near 40, indicating that the asset is nearing the oversold area and maintains bearish momentum, suggesting the potential for further downside unless buying pressure increases.

Additionally, the asset is trading below the 200 Exponential Moving Average (EMA) on the four-hour timeframe, indicating that it is in a downtrend.

Meanwhile, MACD has issued a sell signal, with the MACD line falling below the signal line. At the same time, Awesome Oscillator (AO) histogram bars are shrinking, reflecting weakening bullish momentum and strengthening bearish pressure.

$100 Million Fund Fails to Lift Pi Coin Price

However, this bearish outlook for Pi Coin comes despite the positive announcement of the launch of Pi Venture with $100 million and its initiative to support startups and businesses that advance the utility and real-world adoption of Pi.

 

Following the announcement, the Pi Network also noted, “This strategic program intends to invest in high-quality startups and companies across sectors, driving innovation and ecosystem growth. By providing early support for innovative utility creation and real-world integration, this moment marks a pivotal step forward for Pi.”

But all these development failed to lift the Pi Network price. Some community members argue that this fund might actually be adding sell pressure, which may explain the recent drop in the asset’s price.