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 drop threatens to wipe out all accumulated growth for the month, leaving PI's performance at just 14% in May.
PI loses important market support — What will the next step be?
Analyzing PI's daily price chart through the Bollinger Band indicator shows that the price has dropped below the middle band — a level that traders expect to serve as an important support level.
This development reflects increasing selling pressure, while also indicating a high likelihood that PI will continue to decline 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 opportunities for a recovery or even a breakout. However, if the price reaches this level, it means PI will suffer an additional decline of 56% from the recent peak.
Currently, traders are closely monitoring this area, viewing it as a key point for the price to either bounce back or continue to plunge deeper.
Bearish trend: Will it last?
The Accumulation/Distribution (A/D) indicator shows that PI is being heavily distributed without corresponding buying demand support. This reflects that investors are rushing to exit their positions, while demand from buyers is nearly absent.
According to this indicator, with the current rate of distribution, PI is at high risk of falling below its all-time low.
Source: TradingView
At the same time, the Average Directional Index (ADX) indicates that selling pressure is still high. Generally, when the ADX rises sharply and the market moves decisively in one direction (whether up or down), it confirms that the current trend is dominant.
If the ADX continues to rise, this will reinforce the view that PI is highly likely to continue declining 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 on the spot market, but sentiment in PI's futures market is also showing negative signals. Open Interest (OI) in PI's futures contracts continues to decline, reflecting traders' withdrawal.
Specifically, the decrease in the number of open contracts along with the decline in asset value indicates that the market is witnessing more sell-offs from futures traders.
Source: CoinGlass
At the time of writing, the latest data shows that OI has dropped to $4,000 — a figure confirming that selling pressure is dominating the market.
Conclusion
With a host of sell signals appearing simultaneously, Pi Network [PI] is facing the risk of deeper declines, potentially reaching $0.30 in the near future. To prevent this trend, demand from buyers needs to return immediately; otherwise, PI will continue to sink deeper into the downturn.
