Pi Network’s MACD and Balance of Power Signal Deepening Bearish Momentum
Pi Network’s native token, PI, has extended its downward trajectory for another week, shedding nearly 16% amid a weakening market environment. Since its all-time high of $3 on February 25, PI has failed to attract significant buying momentum, leading to consistent weekly losses and heightened bearish sentiment. The combination of ongoing daily token unlocks and escalating macroeconomic uncertainty continues to exert pressure on the token’s price.
Technical Indicators Signal Strong Bearish Momentum
On the technical front, the Moving Average Convergence Divergence (MACD) indicator reinforces the bearish outlook. At present, the MACD line (blue) remains below the signal line (orange), signaling declining buying momentum and serving as a sell signal to traders. This technical setup suggests further downside risk for PI in the near term.
Adding to the negative sentiment, Pi’s Balance of Power (BoP) indicator stands at -0.12, indicating that sellers dominate the market with little resistance from buyers. The BoP, which measures buying strength versus selling pressure, confirms that market participants remain pessimistic, and selling momentum could persist without new demand catalysts.
Price Struggles Below Key 20-Day EMA Resistance
Currently, PI is trading around $0.53, below its critical 20-day exponential moving average (EMA) at approximately $0.56. Trading beneath the 20-day EMA typically signals short-term bearish momentum and potential continuation of the downtrend. Should this selling pressure remain, PI may test its all-time low near $0.40.
Conversely, a recovery past the 20-day EMA could ignite bullish interest, potentially pushing PI towards the next resistance level around $0.79. Until then, technical indicators and market sentiment suggest continued challenges for Pi Network’s token.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
