Pi Network [PI] Token Is Set to Fall to $1 and Lower

Pi Network [PI] saw debates about its decentralization and its long-term sustainability. The tokenomics were not encouraging for investors, and the technical analysis

Pi Network [PI] has been a subject of discussion for its decentralization and the long-term sustainability of the project.

Its tokenomics have not been favorable for investors, and technical analysis indicated that the short-term trend was heavily bearish.

Pi Network token is heading towards $1 and lower

Source: PI/USDT on TradingView

Over the past three days, there was an increasing presence of bearish market structure in PI’s price action.

The psychological price level of $2 acted as resistance over the past three days, followed by a lower high at $1.87 and a lower low at $1.23. These levels were key to traders in the selected timeframe.

Shortly before press time, PI dropped sharply, breaking the previous lower low and continuing the bearish market structure.

Looking back to February’s price levels, supports were identified at $0.93 and $0.65.

While the $1 psychological level might slow down the rate of losses, it seems unlikely to provide strong support. Sellers have been in a strong position recently, with the OBV hitting new lows, showcasing the downtrend that unfolded in March.

The Awesome Oscillator also showed strong bearish momentum. At the time of writing, the trading volume soared, which could be viewed as a bullish attempt to stall the decline, but it appears unsuccessful so far.

Source: Coinalyze

The Funding Rate was negative and has been for most of the past five days. Together with the falling prices, it indicated bearish sentiment and a willingness to sell the PI token short in the derivatives market.

The short sellers were paying the long positions funding, which means that the majority of traders were leaning bearish.

This could set up the conditions for a short-term price bounce to hunt liquidity, but the overall trend would likely remain bearish due to the lack of demand.