The Pi Network has dropped by double digits over the past week, even as the broader cryptocurrency market shows signs of recovery. The market cap of the altcoin has fallen to $4.1 billion, as Pi continues to face intense selling pressure.
With increasing downward pressure, the token may revisit its all-time low near $0.40 soon.
PI risks in deeper decline
Despite some strength in the broader market, investor sentiment towards Pi remains weak, with technical indicators suggesting that the price decline may continue.
The Relative Strength Index (RSI), a key momentum indicator that tracks overbought and oversold conditions in the market, continues to decline, indicating falling demand and increasing selling pressure.
At the time of publication, the Relative Strength Index (RSI) for Pi is in a downward trend at 39.78. This reading indicates weak momentum and places the token just above the oversold territory, suggesting that ongoing selling pressure may lead to further losses.
Furthermore, the On-Balance Volume (OBV) for the Pi Network has also declined, indicating a decrease in accumulation and waning buyer interest. This indicator is at -1.26 billion at the time of publication, down 15% over the past week.
The On-Balance Volume (OBV) measures buying and selling pressure by tracking volume flow relative to price movements. When OBV declines like this, more volume is associated with selling than buying. This indicates weak investor confidence and the potential for further price declines.
PI token risks in retesting its all-time low.
The deteriorating Chaikin Money Flow (CMF) supports the bearish outlook above for Pi. At the time of publication, this indicator, which tracks how money flows into and out of the asset, is below the zero line at -0.15.
This negative reading reflects the strength of selling pressure in the PI spot markets. If this trend continues, PI could revisit its all-time low of $0.40.
However, a reversal of the current trend could push the price of PI to $1.01.