Pi Network (PI) is entering May with mixed technical signals. Momentum indicators show a strong downtrend, while money flow suggests accumulation potential. The ADX indicator has spiked above 50, signaling a strong downtrend is underway.
At the same time, the Chaikin Money Flow (CMF) indicator has turned positive for the first time in several weeks, showing early signs of renewed buying interest. However, with short-term EMAs still below long-term EMAs, PI needs to hold the crucial support level at $0.547 to avoid deeper losses.
Pi Network enters a strong downtrend as ADX spikes above 50.
The Directional Movement Index (DMI) chart of Pi Network shows a significant change in trend strength, with the Average Directional Index (ADX) rising sharply to 56.72 compared to just 10.48 three days ago.
ADX measures the strength of a trend without distinguishing direction, with levels above 25 often indicating a strong trend. Levels above 50, as seen now, reflect a very strong trend — something traders often consider dominant and likely to persist in the short term.
PI's DMI | Source: TradingView
At the same time, analyzing directional indicators shows that the current dominant trend is bearish.
The +DI indicator (measuring upward movement) has dropped sharply from 15.88 to 4.61, while the -DI indicator (tracking downward movement) has significantly increased from 23 to 45.
The growing gap between +DI and -DI reinforces the view that Pi Network is in a strong and accelerating downtrend. Unless buying pressure returns soon, the current technical indicators suggest the possibility of further declines remains.
PI's CMF has reached its highest level since mid-April.
Pi Network's Chaikin Money Flow (CMF) has increased from -0.08 just a day prior to 0.06, marking the highest level since April 14.
CMF is a volume-based indicator that measures the money flow in or out of an asset over a specific period. This index fluctuates between -1 and +1, with values above 0 indicating buying pressure (accumulation) and values below 0 signaling selling pressure (distribution).
Sustaining positive levels often indicates that investors are beginning to accumulate this asset.
PI's CMF | Source: TradingView
With PI's CMF currently at 0.06, this change signals a potential shift in market sentiment, indicating that capital is returning to the token after a period of outflow.
Although this level is still relatively low, the shift to positive territory and reaching a multi-week high may signal weakening bearish momentum.
If the trend continues and is confirmed by stronger price action or increased trading volume, the likelihood of a short-term recovery or price stabilization will be higher. However, additional confirmation signals are needed before a clear bullish trend can be determined.
Pi Network faces a crucial support test as the EMA structure remains negative.
Pi Network is currently in a negative technical model, with short-term exponential moving averages (EMA) below long-term EMAs — a structure that often signals a continuing downtrend.
This token has decreased by more than 5% in the past 7 days, reflecting increasing selling pressure. If the correction continues, PI may soon test the nearest support level at $0.547.
If this level is broken, the risk of deeper declines towards the $0.4 price zone will become more realistic.
PI price chart | Source: TradingView
However, if the trend reverses and buyers regain control, the price of PI could retest the resistance level at $0.665.
If a breakout exceeds this threshold, the price may continue to rise, with a potential target being the next major resistance zone at $0.789.
The current EMA structure still leans towards the sell side, but if momentum changes — confirmed through trading volume and price action — then the short-term outlook could shift positively.
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should thoroughly research before making decisions. We are not responsible for your investment decisions.