The PI Network has found itself under intense market pressure, with its token price plummeting by a staggering 25% in just 24 hours. This sharp decline has rattled the community, especially coming hot on the heels of what should have been a bullish development—the launch of Pi Network Ventures, a $100 million fund aimed at fueling Web3 startups.
Rather than boosting market confidence, the fund’s announcement seems to have been overshadowed by broader bearish sentiment, and the timing couldn’t have been worse. Investors are now questioning whether PI is at the beginning of a deeper slide that could see the token test its historical lows once again.
Technical Breakdown Paints a Cautious Picture
A closer look at the PI/USD daily chart reveals a critical level is being tested. PI is teetering on the edge of breaking below its 20-day Exponential Moving Average (EMA)—a key technical indicator that traders often watch to gauge short-term momentum.
Why does the 20-day EMA matter? Because it acts as a dynamic support level. When an asset consistently trades above it, it usually reflects underlying strength. But when it starts breaking below this average, it can signal that bullish momentum is drying up.
Right now, PI is hanging dangerously close to this threshold. Should it close beneath the 20-day EMA—currently hovering around $0.80—it would likely confirm a shift in market sentiment from mildly bullish to overtly bearish. This wouldn’t just erase the gains PI accumulated between May 8 and May 13; it could also trigger a cascade of sell-offs.
Balance of Power Tilting to Sellers
Adding to the concern is PI’s Balance of Power (BoP) indicator, which currently reads at -0.14. This metric measures who’s in control—buyers or sellers—and right now, the sellers clearly have the upper hand.
The BoP essentially evaluates the positioning of the closing price within the day’s trading range. When it dips into negative territory, especially at these levels, it underscores strong downward pressure and hints that further losses may be imminent unless buyers step in quickly.
This selling momentum is not just a blip. It reflects a possible deeper trend, especially when combined with the EMA breakdown.
The Bearish Path: Could $0.40 Be Next?
If the current trend continues and PI closes below its 20-day EMA, the next logical level to watch would be its all-time low of $0.40. That would mark a 50% drawdown from today’s already battered price and could reinforce concerns that the token is trapped in a prolonged bearish cycle.
Such a scenario would also suggest that the recent optimism surrounding Pi Network Ventures wasn’t enough to counteract underlying doubts about PI’s long-term value proposition—or, at the very least, its short-term momentum.
Is There Still Hope for the Bulls?
Despite the gloomy signals, there’s still a narrow path to recovery. If the bulls manage to defend the $0.80 support and push PI back toward the $1.01 mark, it could reignite confidence in the project. Such a move would require a shift in sentiment—possibly from new announcements, improved market conditions, or simply speculative buying at oversold levels.
But make no mistake, the burden is now on the bulls to change the narrative. Until then, all signs point to caution, with the specter of a deeper decline looming large over the PI Network.
