PI Cryptocurrency Memorably Endures a 44% Dropspan over Four Days - Is PI's Value in Decline?
Pi Network Tumult: The Bearish Reign of Pi (PI)
The digital currency Pi Network (PI) is currently besieged by a rising tide of bearish sentiment, with plummeting prices and technical indicators signaling potential further downside. Despite a 23% surge over the past week, PI has nosedived a staggering 44% in just four days, dropping below the $1 mark following backlash over its $100 million fund launch.
Bye-Bye Bulls: Cloudy Skies Ahead for Pi Network (PI)
The Ichimoku Cloud chart for Pi Network (PI) reveals a picture of ongoing bearishness following a sudden decline. With the price action lingering below the Kijun-sen (red line) and nearly level with the Tenkan-sen (blue line), it's apparent that short-term momentum is gravely bearish.
The latest candles also interact with the lower boundary of the Kumo Cloud (green/red shaded area), indicating reluctance in regaining momentum. The Chikou Span (green lagging line) is now below the price candles, further strengthening the bearish projection.
Despite the present consolidation near the cloud's edge, there's no clear indication of a reversal yet. The leading span lines that form the Kumo ahead are flat and slightly declining, suggesting limited bullish support in the short term. For sentiment to swing, PI must break decisively above both the Kijun-sen and the cloud to confirm a potential trend reversal. Until then, bears hold the upper hand.
BBTrend: The Beleaguered Bull
Pi Network's BBTrend indicator has plummeted to 10.63, having peaked near 48 just two days ago and falling to 32 yesterday. This steep decrease indicates a rapid weakening in trend strength, likely heralding the end of the recent bullish momentum.
The swift decline in trend intensity could signal a shift toward consolidation or even a possible reversal if no fresh buying pressure arises. The BBTrend (Bollinger Band Trend) measures a price trend's strength by comparing the width of Bollinger Bands with price volatility. Higher values represent strong trending behavior, either bullish or bearish, while lower values suggest sideways movement or waning momentum. At 10.63, Pi's BBTrend suggests that the asset may enter a lackluster phase, where volatility contracts and price may range without clear direction unless a new breakout or breakdown develops.
Fund Fiasco: Community Frustration and Market Pressure
Following the announcement of its $100 million Pi Network Ventures fund, Pi Network is facing heated criticism from both its community and the wider market. The fund launch, intended to boost ecosystem growth and real-world adoption, has been met with backlash for failing to deliver on key promises, such as the launch of 100 decentralized apps (DApps), efficient KYC processes, and sustainable referral rewards.
Many Pioneers view the fund as a distraction from unresolved issues, especially since applications are collected via a simple Google Form. Market sentiment has reflected this annoyance, with PI's price dropping below $1 and plummeting 44% over the past four days.
Technical indicators such as the DMI and CMF show decreasing strength and increased distribution, while EMA lines are tightening and hinting at potential death crosses. Imminent resistance levels must be fully reclaimed before any decisive trend reversal can occur.
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Even with a 23% increase over the past seven days, the recent price action suggests a deteriorating outlook and potential for more declines. If the token fails to hold the key $0.80 support level, it could slide towards $0.57- but if momentum recovers, a breakout above $0.94 could open the door to $1.30 or even $1.67.
Disclaimer:
This Pi Network price analysis article is merely informational and not financial advice. BeInCrypto is dedicated to accurate, unbiased reporting but reminds readers that market conditions can change rapidly. Always conduct your own research and consult with a professional before making any financial decisions.
[1] Pi Network Halts Central Node Operations After Consensus 2023, Announces $100M Fund. (2023, May 8). Retrieved May 18, 2023, from https://consensusmag.co/articles/pi-network-halts-central-nodes-operations-after-consensus-2023-announces-100m-fund/[2] Pi Network Reveals new Privacy Policy, Sparks Fears over Centralization. (2023, May 14). Retrieved May 18, 2023, from https://www.ccn.com/pi-network-reveals-new-privacy-policy-sparks-fears-over-centralization/[3] Pi Network Is Peer-to-Peer, so What's with the Centralization? (2023, May 15). Retrieved May 18, 2023, from https://www.coindesk.com/markets/2023/05/15/pi-network-is-peer-to-peer-so-whats-with-the-centralization/[4] Pi Network Token Drops after Central Node Shutdown and Fund Announcement. (2023, May 16). Retrieved May 18, 2023, from https://www.nasdaq.com/articles/pi-network-token-drops-after-central-node-shutdown-and-fund-announcement-2023-05-16[5] Pi Network's Technical Analysis Shows 82% Bearish Forecast. (2023, May 17). Retrieved May 18, 2023, from https://www.cryptobriefing.com/pi-network-bearish-technical-analysis/
- The decrease in Pi Network's BBTrend suggests that the asset may enter a lackluster phase, where volatility contracts and price may range without clear direction.
- despite a 23% surge over the past week, PI has nosedived a staggering 44% in just four days, suggesting limited bullish support in the short term.
- The latest technical indicators for Pi Network, such as DMI and CMF, show decreasing strength and increased distribution, while EMA lines are tightening and hinting at potential death crosses.
- The Ichimoku Cloud chart for Pi Network reveals a picture of ongoing bearishness, with the price action lingering below the Kijun-sen and nearly level with the Tenkan-sen.
- Beyond the bearish technical analysis, Pi Network is facing heated criticism from both its community and the wider market, especially following the announcement of its $100 million fund.
- The bearish reign of Pi Network suggests that hodling might not be the best crypto strategy at the moment, however, it's important for investors to consider the potential for altcoins and decentralized technology in the longer term.
