In Friday's trading session, the price of Pi Network (PI) continued its downward trend, losing an additional 9%, significantly increasing the recent total decline. This negative development was driven by comments from Justin Bons, who called Pi Network a potential "scam," creating a wave of concern within the investor community.

BBTrend of Pi Network hits a record low

BBTrend of Pi Network is currently at -40.69, marking the lowest level ever and maintaining a negative state for five consecutive days. BBTrend (Bollinger Band Trend) is an indicator that measures the strength and direction of price trends based on volatility relative to the Bollinger Bands.

  • A positive value of BBTrend indicates bullish momentum.

  • A negative value indicates a strong downward trend.

Pi Network's BBTrend remaining deeply negative reflects that the market is in a strong declining phase. When this indicator falls to extremely low levels, it suggests that sellers are dominating, potentially pushing prices further down unless there is a strong reversal.

RSI has recovered but is still in a bearish zone

PI RSI. Source: TradingView.

The Relative Strength Index (RSI) of Pi Network has recovered to 36.15 after hitting a low of 17.5 just a few hours earlier. RSI is a momentum indicator that measures the speed and change of price movements.

  • When RSI is above 70, the asset may be in an overbought state.

  • When RSI is below 30, the asset may be in an oversold state.

The recovery of Pi Network's RSI above 36 indicates some buying pressure has returned, but the price remains weak. If RSI continues to rise, this could be a sign of a potential reversal. Conversely, if RSI fails to rise further, PI's price may still face additional downward pressure.

Will PI drop below $0.90?

PI price analysis. Source: TradingView.

Pi Network dropping below the $1 mark for the first time since February 22 has raised concerns about the next trend. With Justin Bons strongly criticizing the project's legitimacy, market sentiment continues to be negatively affected.

If the downtrend continues, PI may test important support levels:

  • First support: $0.81

  • Next support: $0.62

Conversely, if Pi Network can regain upward momentum despite selling pressure, the price may aim for resistance levels:

  • First resistance level: $1.23

  • Stronger resistance level: $1.79

However, this recovery momentum depends on whether investor confidence can be strengthened, especially as criticisms of the project's legitimacy continue to spread. Market sentiment remains very fragile, and investors need to be cautious before making trading decisions.