Decline of 25% in PI Network Triggers Concerns over Continued Price Slump
The PI token's value has plummeted by a whopping 25% in the past 24 hours, occurring mere hours after the launch of Pi Network Ventures, its massive $100 million startup fund. This plunge has left investors scratching their heads, raising concerns about the PI token's near-term price course.
Uneasy Seas Ahead for PI as Bearish Dominance Takes Hold
The day's PI/USD chart indicates that the decline might not be over yet. With the PI token poised to slip beneath its 20-day Exponential Moving Average (EMA), it suggests a prolonged bearish trend is lurking.
The 20-day EMA, a measure of the token's average price over the last 20 trading days, places emphasis on recent price data. When an asset's price is about to break below this crucial moving average, it signals a waning short-term momentum and a potential move towards a bearish market.
For PI, a fall below the 20-day EMA could potentially undermine the token's recent bullish surge occurring from May 8 to May 13, leaving the door open for steeper price adjustments.
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Join NowMoreover, PI's Balance of Power (BoP) currently shows a negative figure, pointing towards a selling trend among market participants. In this snapshot, the BoP is -0.14.
The BoP indicator gauges the strength of buyers versus sellers by scrutinizing closing prices relative to the trading range. A negative BoP like this means sellers are in control, driving down the prices.
PI Braces for Breakdown Toward $0.40
A break below the 20-day EMA would confirm the bearish shift in investors' sentiment towards PI. The 20-day EMA, currently acting as dynamic support at $0.80, has held back previous price slides and encouraged buying activity.
The breach of the 20-day EMA support level would invalidate its hold and bolster the existing bearish attitude. This would suggest an escalating selling pressure among PI token holders and hint at the possibility for sharper corrections ahead. In this scenario, the PI token could revisit its all-time low of $0.40.
But, should the bulls regain control, they could propel PI's price up towards $1.01.
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Disclaimer
As a responsible information provider, the opinions presented in this price analysis article are purely educational and should not be construed as financial or investment advice. BeInCrypto is dedicated to accurate, neutral reporting, but market values tend to change swiftly, warranting users to perform independent research and consult with experts before investing their funds. Please refer to our revised Terms and Conditions, Privacy Policy, and Disclaimers for further clarification.
Following the 25% plunge in the value of the PI token, concerns about its near-term price course have arisen. The day's PI/USD chart suggests the decline might not be over yet, with the token poised to slip beneath its 20-day Exponential Moving Average (EMA), indicating a prolonged bearish trend. Moreover, the PI's Balance of Power (BoP) currently shows a negative figure, pointing towards a selling trend among market participants. Should the PI token break below the 20-day EMA, it could potentially signal a bearish market and even lead to steeper price adjustments, possibly revisiting its all-time low of $0.40. Conversely, a bullish shift in sentiment could propel PI's price up towards $1.01. Investors looking to trade cryptocurrencies like PI might consider platforms such as TonTrader, dYdX, Arkham, BingX, HTX, and multiple others. As always, it's essential to conduct independent research and consult with experts before making any investment decisions.
