Pi Network's recent announcement of a $100 million venture capital fund aimed at strengthening its ecosystem has led to a significant market reaction. Despite the ambitious initiative, the immediate impact on the PI token's price has been negative.
Key Developments:
Price Decline: PI has dropped by 26.2% in the past 24 hours, currently trading at $0.8837.
Fund Allocation: The $100 million "Pi Network Ventures" fund will invest in general technology companies, not exclusively in blockchain projects.
Investor Sentiment: The lack of immediate benefits to the PI token and vague details about project selection have contributed to the bearish outlook.
Technical Analysis:
Support Levels: PI has fallen below the critical $1 support level, indicating a bearish trend.
Resistance Levels: The $1 mark now acts as a key resistance point.
Indicators: The Relative Strength Index (RSI) has moved to oversold levels, and the 21-period EMA has crossed below the 50-day and 200-day EMAs, signaling the potential for further decline.
Market Sentiment:
Trading Volume: An 11% increase in trading volume suggests heightened market activity, possibly due to speculative trading.
Community Feedback: Ongoing complaints about slow migration processes and delayed ecosystem developments may be influencing investor confidence.
Outlook:
If PI fails to regain the $1 support level, it may continue its downward trajectory, potentially reaching $0.75 or lower. Investors should monitor technical indicators and market sentiment closely.
#PiNetwork #CryptoMarket #TechnicalAnalysis
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📢Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your research before making investment decisions.