After more than 4 to 5 years of waiting, Pi Network has finally officially entered the open mainnet over 3 months ago. This event marked a major turning point, bringing this once highly anticipated project back into the spotlight of the cryptocurrency market. Pi Network quickly made it into the top 20 cryptocurrency projects after launching the mainnet, attracting significant attention on social media platforms and boasting over 60 million users globally.
Current Situation: PI Price is Highly Volatile and Bearish Signals Dominate
Although the Pi Network has made significant progress, the price of the PI token is still showing extreme volatility, especially after large token unlock events, causing many investors to become cautious. After bouncing back from the support zone below 0.7 USD, the price of PI has shown slight recovery signals; however, the long-term trend is still not really optimistic.
Upon closer observation, the price of PI has gone through two strong rallies, but then quickly faced sell-offs, leading to a clear bearish pattern being established. From the most recent peak, the price has dropped more than 52%, and according to technical analyses, the long-term trend remains negative with a target drop deep into the 0.3 USD range, corresponding to a decrease of up to 80% from the peak.
Technical Indicators Show Continued Bearish Trend Dominance
On a broader timeframe, the price of PI is trading below the Gaussian channel – a typical signal of a bearish trend. Additionally, the CMF (Chaikin Money Flow) indicator is also showing bearish divergence, although it is attempting to create recovery signals. The significant decrease in trading volume further reinforces the argument that speculative and trading activities are cooling down, increasing continued risks. With the current technical signals, the price of PI may be preparing for another drop of 10% to 15% in the short term if it cannot hold the current support.
Short-Term and Long-Term Outlook: Is There Still Hope for the Bulls?
In the short term, the price of PI may continue to trade within the accumulation zone with slight fluctuations around the support area. However, subsequent token unlock events are expected to increase market volatility, potentially creating short-term rallies if the buying pressure is strong enough.
The prerequisite for improving market sentiment is that the price of PI needs to break through the important resistance level at 1 USD and maintain above this level for a long time without a strong correction.
Conclusion
Although Pi Network is making significant progress in developing its ecosystem and brand recognition, the price of PI is still under heavy pressure from technical factors and market sentiment. If it cannot maintain above 1 USD and overcome the impact from token unlock events, the bearish trend may continue to prevail in the coming period. However, if the project continues to attract users, promotes practical applications, and lists on more major exchanges, a strong recovery could still occur in the future.
