The long-term decline in the PI network was extended to another week, with the token flowing almost 16% of its value amid the lull of the wider market.
The downward pressure is far from the end as macro uncertainty intensifies and PI’s scheduled daily token unlock weighs heavily on emotions.
When PI falls below the critical threshold, the seller controls
Since hitting an all-time high of $3 on February 25th, PI has recorded a consistent weekly loss, with no major influx of demand to stop the slide.
On daily charts, measurements from the token’s moving average convergence branching (MACD) indicator reflect the bearish momentum of deepening. During pressing, the PI’s MACD line (blue) is located below the signal line (orange).
MACD indicators identify trends and momentum in price movement. This helps traders find potential purchase or sale signals through a crossover between the MACD line and the signal line.
Similar to PI, if the MACD line is below the signal line, it indicates that purchasing activity declines. Traders consider this setup to be a sales signal. Therefore, it could exacerbate downward pressure on the price of Pi.
Furthermore, the balance of negative forces (BOP) of PI shows that the seller continues to control it. At the time of writing, the indicator is -0.12.
The BOP indicator helps measure the strength of buyers and sellers in the market and identify changes in momentum. If that value is positive, buyers will dominate the market more than sellers and will encourage new prices to rise.
Conversely, negative BOP measurements indicate that sellers dominate the market and there is little resistance from buyers. This indicates that it maintains downward pressure and weakens investor confidence.
For PI, negative BOP measurements enhance the bearish outlook. It suggests that selling momentum could continue unless new demand emerges.
PI networks are a struggle below the main EMA level
Currently, the PI is trading at $0.53 and is trading hands below the 20-day index moving average (EMA).
The 20-day EMA measures the average price of assets over the last 20 days, giving more weight to recent prices. When the asset’s price falls below the 20-day EMA, it shows short-term bearish momentum and potential downsides. If the bear holds control, you can drive the Pi price and revisit the all-time low for $0.40.
However, rebound could push the tokens of the PI network to $0.79 above the 20-day EMA.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
