Pi Network has faced significant difficulties recently, recording one of the few declines among leading tokens. Currently, Pi is trading at $0.6077, reflecting a 15% drop over the past month.
This weak momentum has left many investors doubtful about its future, especially considering the difficulties in demonstrating signs of improvement.
Pi Network needs to consider inflows
Despite the decline, the Chaikin Money Flow (CMF) indicator suggests that Pi Network has seen some inflows. However, this growth still remains in the negative zone, below the zero line. This indicates that while inflows occasionally occur, outflows remain dominant, keeping the altcoin in a depressed state.
The negative value of CMF indicates that selling pressure is still largely controlling the price movement of the altcoin. Although there is some positive market activity, it is not enough to overcome the dominant outflows. The lack of support from investors is attributed to fundamental issues with Pi Network, which was acknowledged by Elvin Kahn, Chief Operating Officer of Bitget Wallet, in response to BeInCrypto. The correlation of Pi Network with Bitcoin is also concerning. Currently, Pi has a correlation of -0.11 with Bitcoin, indicating an inverse relationship. This means that when Bitcoin shows growth, Pi tends to experience a decline.
As Bitcoin approaches $100,000, Pi Network may face challenges in leveraging potential Bitcoin profits, which could lead to further corrections.
Given Bitcoin's strength, Pi may continue to decline as its price usually 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 a broader market rally. Instead, it may face additional downward pressure. The price of PI needs a significant reversal.
The price of Pi Network has decreased by 15% over the past month, currently standing at $0.6077. The price drop, especially after high expectations for the token, has caused disappointment among investors. With increasing selling pressure, it seems more investors are withdrawing their funds from Pi, leading to ongoing losses for the token.
If this trend continues and the price of Bitcoin continues to rise, the altcoin may experience further declines. The negative correlation with Bitcoin could lead to Pi breaking the support level of $0.6077 and heading towards support at $0.5192. If the trend persists, the altcoin could approach its historical low of $0.4000, further deepening its losses.
Thus, staying vigilant is the best option for any investor. While the novelty of mining Pi Network on mobile quickly gained traction, it did not last long, impacting the price. However, if market conditions improve and investor sentiment shifts, Pi Network may have a chance for recovery. A breakout of the resistance level of $0.8727, with subsequent conversion into support, could signal a reversal. This would set Pi on a path to $1.0000, refuting the current bearish forecast and creating conditions for potential growth.#Write2Earn #BinanceSquare #PiCoreTeam #Binance #crypto $BTC