Executive Summary
The Pi Network (PI) has exhibited a marked decline of 2% over the preceding 24 hours, with projections indicating the potential to fall beneath the critical threshold of $0.22 if prevailing bearish trends persist. The technical assessment underscores a significant short-term risk for the asset.
Market Analysis: Technical Indicators and Supply Dynamics
The Pi Network has been experiencing a pronounced downturn over the past three days, posing a threat of breaching a pivotal support trendline. Current on-chain metrics reveal an escalation in supply pressure, particularly as Centralized Exchanges (CEXs) are confronted with increased inflows. This development raises concerns regarding investor sentiment and asset retention.
On-Chain Data Insights
Recent data retrieved from PiScan indicates that user deposits across KYB-verified CEXs amount to approximately 2.75 million PI tokens within the last 24 hours. This influx significantly surpasses the outflows, which recorded at 1.76 million tokens. Such figures suggest a net inflow of PI tokens within CEXs, implying that investors may be liquidating portions of their holdings in response to market conditions.
Short-Term Price Projections: Will PI Navigate Below $0.22?
The PI/USD 4-hour chart presents a distinctly bearish outlook, with PI experiencing a 2% depreciation within the last day. The cryptocurrency is currently retracing towards a local support trendline established from historical lows on October 22 and November 4.
Current Trading Status
As of the latest evaluations, PI is trading at $0.2267 amidst a prevailing bearish trend. Technical indicators corroborate this negative sentiment, with the Relative Strength Index (RSI) situated at 37, indicating an imminent approach towards oversold territory should the current trend continue. Furthermore, the Moving Average Convergence Divergence (MACD) lines remain entrenched within bearish parameters.
Potential Price Trajectories
If bearish momentum persists, PI risks falling below its recent low of $0.2204, with another significant support level located around $0.1919. Conversely, should bullish forces regain dominance, PI has the potential to reclaim previous highs around $0.2841, with aspirations towards recovering the August 1 low at $0.3220.
Conclusion
Despite these potential upward trajectories, current market conditions remain predominantly bearish, suggesting that PI may continue its underperformance in the forthcoming days.
