Pi Network Continues to Struggle as Its Price Remains on a Downward Trajectory

Despite earlier optimism, investors have been increasingly skeptical of the coin, contributing to a prolonged downtrend.

Pi Network, a cryptocurrency that has been struggling to maintain its value, is showing signs of an impending decline, according to technical analysis.

Average Directional Index (ADX) Reaches 25.0

The ADX, a measure of the strength of a trend, has crossed the 25.0 threshold, indicating that the current bearish trend is gaining momentum. This is a concerning development for investors, as it suggests that it will be increasingly difficult for Pi Network to recover in the short term.

The rising bearishness is evident in the sustained outflows, which are putting pressure on the token’s price as it approaches its previous all-time low (ATL).

Investor Uncertainty

The uncertainty around Pi Network’s value is also evident in the Chaikin Money Flow (CMF) indicator, which measures the volume of money flowing into and out of a coin. The CMF is currently in the negative zone, indicating that there are more outflows than inflows. This signals that investors are still reluctant to buy into the token, despite its recent price drop.

However, there has been a slight uptick in the CMF, which could indicate that the outflows are slowing down and/or there are signs of minor capital inflows. This shift from sustained outflows to a slowing outflow/minor inflow could be a positive development for Pi Network’s price in the long term.

But for now, the CMF is still deeply negative, which poses a challenge to Pi Network’s recovery.

Pi Network's Price Nears New Low

Pi Network is currently trading at $0.70, a 12.8% decrease over the past 24 hours. The altcoin fell below the $0.87 price point, which had acted as support previously.

It is now trading at $0.70, a 12.8% decrease over the past 24 hours and just above its ATL of $0.62.

The failure to maintain the $0.87 price point, despite attempts to do so, showcases the lack of investor confidence, which has ultimately driven the coin lower.

If the bearish trend continues, Pi Network is likely to fall through the $0.62 support level and continue toward the $0.50 price point. A new ATL could be set as the market sentiment continues to be a huge factor in the price action, leading to further losses for existing investors.

The only way to reverse the bearish outlook is for investors to change their approach and capitalize on low prices. Increased inflows could potentially drive Pi Network’s price back above $0.87, and if it surpasses the $1.00 level, it would reclaim critical support and signal a possible recovery for the altcoin.