Pi Network (PI) Plunges 9%: Is a Price Reversal on the Horizon?

Pi Network (PI) Tests New Lows: How Long Can the Bearish Trend Last?

Pi Network (PI) continued its downward trend on Friday, dropping another 9%, extending its recent bearish momentum. The decline follows allegations from crypto analyst Justin Bons, who called the project a potential “scam,” contributing to a surge in negative sentiment around the coin. As Pi Network struggles to maintain its position below the $1 mark, traders are closely monitoring the situation to determine whether a reversal is possible or if additional losses are on the horizon.

BBTrend Indicates Bearish Momentum

One of the key technical indicators, BBTrend (Bollinger Band Trend), has reached an alarming low of -40.69, marking its lowest level ever. This negative reading has persisted for the last five days, highlighting the sustained bearish pressure Pi Network is facing. BBTrend values, when deeply negative, suggest strong selling activity and that the market is in a downtrend. In this scenario, the Pi Network price may continue to decline unless a sharp reversal occurs, signaling that the bears are in control.

RSI Shows Slight Recovery but Remains Bearish

Pi Network’s RSI (Relative Strength Index) has shown a slight rebound, rising to 36.15 from an extreme low of 17.5 earlier. While this signals a small recovery, the RSI remains in bearish territory, indicating that buying pressure is not yet strong enough to push the price higher. If RSI fails to continue climbing, Pi Network may remain vulnerable to further price corrections.

Potential Price Levels: Can PI Fall Below $0.90?

Pi Network recently fell below the $1 level for the first time since February 22, adding to concerns over its future price movement. If the downtrend continues, Pi Network could test key support levels around $0.81 and potentially $0.62. However, if the project can overcome the recent criticism and regain strength, it might push back toward resistance levels near $1.23. A significant rebound could pave the way for a move towards $1.79, but the market sentiment remains fragile following Bons’ allegations and the price breakdown.

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.