Pi Network (PI) has demonstrated increasing technical vulnerability, plummeting nearly 15% over the past week and 4.4% in the last 24 hours. Its market capitalization now stands at $5.12 billion**, while trading volume surged **25% in a single day** to **$104.6 million, reflecting heightened activity amid a deepening downtrend.
Key technical indicators—ADX, CMF, and EMA structure—all signal escalating bearish momentum, with selling pressure intensifying and price action failing to sustain support levels. Without a momentum reversal, PI remains at risk of further declines in the near term.
Pi Network’s Bearish Trend Gains Momentum
The Directional Movement Index (DMI) chart for Pi Network reveals a sharp rise in the Average Directional Index (ADX), climbing to 21 from 11.46 just a day earlier.
ADX Interpretation:
- Below 20: Weak or non-trending market.
- Above 20: Strengthening trend (bullish or bearish).
The current ADX breach suggests a potential decisive move ahead.
Key DMI Observations:
- +DI (Positive Directional Indicator): Dropped to 13.21 from 20.93 (two days ago).
- -DI (Negative Directional Indicator): Surged to 31.92 from 23.48.
The widening -DI dominance indicates mounting downward pressure. When paired with a rising ADX, this confirms a bearish trend acceleration.
👉 Why Pi Network’s downtrend matters for traders
Chaikin Money Flow (CMF) Signals Heavy Selling
Pi Network’s CMF plummeted to -0.20, down from 0.08 three days ago and -0.08 yesterday.
CMF Basics:
- Positive: Buying pressure/accumulation.
- Negative: Selling pressure/distribution.
- Beyond ±0.10: Significant capital flow.
At -0.20—PI’s lowest CMF since May 17—the data underscores sustained capital outflow, aligning with recent price weakness to reinforce a bearish outlook.
Implications:
- Bounce attempts may face resistance due to lack of bullish volume.
- Continued CMF decline could signal prolonged seller control.
EMA Structure Hints at Further Downside
Pi Network’s EMA indicators remain firmly bearish:
- Short-term EMAs below long-term EMAs = Downtrend confirmation.
- Widening EMA gaps emphasize strong downward momentum.
Support and Resistance Levels:
- Next Support: $0.66**. Loss here may target **$0.57.
- Key Resistance: $0.727**. Breakout could spark recovery toward **$0.86.
Caution: Until short-term EMAs flatten or cross above long-term EMAs, bullish reversals risk being short-lived.
👉 How to navigate Pi Network’s volatile EMA trends
FAQ: Pi Network’s Downtrend
1. Why is Pi Network’s price dropping?
- Bearish technicals (ADX, CMF, EMA) and increased selling pressure are driving the decline.
2. What does the CMF at -0.20 mean?
- It signals heavy capital outflow, suggesting sellers dominate the market.
3. Can PI recover soon?
- Not without bullish volume support and a breakout above $0.727 resistance.
4. What’s PI’s next critical support?
- $0.66**, followed by **$0.57 if the downtrend persists.
5. Is now a good time to buy PI?
- Wait for EMA stabilization or CMF improvement to confirm trend reversal.
Disclaimer: This analysis adheres to the Trust Project guidelines for transparency and accuracy. It is not financial advice. Always conduct independent research and consult professionals before trading. Market conditions can change rapidly.
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