In the past 24 hours, Pi Network (PI) has become the most depreciated cryptocurrency in the market, with a decrease of 20.37%. This significant decline threatens to erase all accumulated growth for the month, leaving PI's performance at only 14% in May.
PI has lost important market support — What will the next steps be?
Analyzing the daily price chart of PI through the Bollinger Band indicator shows that the price has dropped below the middle band — a level that traders expect to act as a significant support level.
This development reflects increasing selling pressure, while also indicating a high possibility that PI will continue to decrease towards the lower band of the Bollinger Band.
Source: TradingView
The lower band, currently set at $0.3112, is expected to be a strong support level for the price, creating an opportunity for a recovery or even a breakout. However, if the price reaches this level, it would mean PI would have to endure an additional 56% decrease from its recent peak.
Currently, traders are closely monitoring this area, viewing it as a critical point for the price to rebound or continue to plunge deeper.
Bearish trend: Will it continue?
The Accumulation/Distribution (A/D) indicator shows that PI is being heavily distributed without corresponding buying demand. This reflects that investors are rushing to exit positions, while buying demand is almost nonexistent.
According to this indicator, with the current distribution rate, PI has a high risk of dropping below its all-time low.
Source: TradingView
At the same time, the Average Directional Index (ADX) indicates that selling pressure is still high. Typically, when ADX rises sharply and the market moves decisively in one direction (whether up or down), it confirms that the current trend is dominant.
If ADX continues to rise, this will reinforce the view that PI is likely to continue decreasing towards lower target levels on the chart.
Unless buying pressure returns quickly, PI is unlikely to avoid returning to its historical lows.
Bearish sentiment in the futures market
Not only weak in the spot market, the sentiment in PI's futures market is also showing negative signals. Open Interest (OI) in PI's futures contracts continues to decline, reflecting the withdrawal of traders.
Specifically, the reduction in the number of open contracts alongside the decline in asset value indicates that the market is witnessing more sell-off activities from futures traders.
Source: CoinGlass
At the time of writing, the latest data recorded OI has decreased to $4,000 — a figure confirming that selling pressure is dominating the market.
Conclusion
With a series of sell signals appearing simultaneously, Pi Network [PI] is facing the risk of a deeper decline, potentially reaching $0.30 in the near future. To prevent this trend, buying demand must return immediately; otherwise, PI will continue to sink deeper into a downtrend.
