Pi Network has faced a significant setback recently, recording one of the few leading tokens to decrease in price. Currently, Pi is trading at $0.6077, reflecting a 15% drop in the past month. This poor performance has led many investors to doubt the company's future, especially as the company is trying to show signs of improvement.
Pi Network needs to pay attention to cash inflows.
Despite the decline, the Chaikin Money Flow (CMF) indicator shows that Pi Network has observed some cash inflows. However, this increase remains stuck in the negative zone, below the zero line. This indicates that although there are occasional cash inflows, outflows still dominate, keeping this altcoin restrained.
The negative CMF indicates that selling pressure continues to control most of the price fluctuations of the altcoin. Although there has been some positive market activity, it is still not enough to overcome the dominant outflows.
The lack of support from investors is due to the fundamental issues of Pi Network, which Alvin Kan, COO of Bitget Wallet, answered.
"The initial surge of Pi Network was largely driven by expectations and years of community mining, but the continuation has been more limited. As early users begin to realize profits, the supply of tokens increases to meet the limited trading listings, and the ecosystem is still developing. Without strong utility or broader liquidity, investor demand naturally wanes. Like many new tokens, Pi is now facing the challenge of transitioning from initial hype to providing long-term value," Kan said.
The correlation of Pi Network with Bitcoin is also a point of concern. Currently, Pi has a correlation of -0.11 with Bitcoin, indicating an inverse relationship. This means that whenever Bitcoin experiences an uptrend, Pi tends to face a decline.
As Bitcoin approaches $100,000, Pi Network may struggle to capitalize on Bitcoin's potential gains, potentially facing further corrections.
With Bitcoin's strength, Pi may continue to decline, as its price often moves in the opposite direction of Bitcoin's rise. This inverse correlation suggests that even if Bitcoin reaches new highs, PI may not benefit from the overall market uptrend. Instead, it may face additional downward pressure.
The price of PI needs a strong reversal.
The price of Pi Network has decreased by 15% in the past month, currently at $0.6077. The price drop, particularly after high expectations surrounding this token, has caused disappointment among investors. As selling pressure increases, it seems many investors are withdrawing from Pi, leading to continuous losses for this token.
If this trend continues and Bitcoin's price continues to rise, this altcoin may continue to decline. The negative correlation with Bitcoin could push Pi down to the support level of $0.6077 and towards the support level of $0.5192. If this trend continues, this altcoin could approach an all-time low of $0.4000, deepening its losses.
Although the novelty of mining Pi Network on mobile devices generated a lot of buzz, it did not last long, leading to prices decreasing accordingly.
"The referral and mobile mining model of Pi Network has helped it build a massive user base, but has also raised skepticism about its sustainability. Although the project clarifies that it does not follow a multi-level structure, concerns remain about the lack of transparency and real-world use cases. To overcome the debate, the focus will need to shift to building reliable utility and expanding access. If that happens, sentiment may recover—but trust takes time," Kan.
However, if market conditions improve and investor sentiment changes, Pi Network may have an opportunity to recover. Breaking the resistance level of $0.8727, then turning it into a support level, could signal a reversal. This would put Pi on a path towards $1.0000, negating the current bearish outlook and setting the stage for potential growth.
