#Top Gainers to Watch# Why did the PI coin fail to maintain the $1 level?
PI has fallen by 17% despite the launch of Pi Network Ventures' $100 million fund to enhance token adoption in the real world in the fields of AI and fintech.
Momentum indicators such as DMI and CMF indicate a pullback in trends and the potential for profit-taking after a strong two-week rally.
The price has dropped below $1, with bearish EMA signals. Support at $0.90 is crucial to prevent deep corrections to $0.78 or lower.
The value of PI has decreased by 17% in the last 24 hours, falling below the $1 level despite the Pi Foundation announcing a $100 million investment fund. The newly launched Pi Network Ventures aims to increase its real-world adoption by investing in companies that integrate PI into AI and fintech sectors.
While the initiative generates excitement in the ecosystem, technical indicators show warning signs. Momentum is declining across many signals, suggesting that profit-taking and broader corrections may have already begun.
The Pi Network launched a $100 million fund
After generating some excitement, the Pi Foundation launched the Pi Network Projects, a $100 million investment fund to accelerate the real-world adoption of the PI token.
Funded by 10% of PI supplies, the startup will invest in early-stage and Series B companies that integrate PI into sectors such as artificial intelligence, fintech, e-commerce, and consumer applications.
Most of the investments will be in PI tokens instead of cash, and will align with the project's long-term environmental goals. After months of decline, PI has rebounded, rising by 85% in the past two weeks amid renewed investor interest and rumors of another listing on exchanges.
Despite the price increase, Pi's technical indicators suggest that the rally may be losing strength. The DMI chart shows that the ADX has dropped from 72 to 35.46 in two days, indicating a sharp decline in trend strength.
ADX values above 25 indicate a strong trend, while values below 20 typically indicate the end of a trend. At the same time, +DI (bullish pressure) has dropped from 61 to 23.99, while -DI (bearish pressure) has risen from 1.2 to 25.
This crossover indicates that bearish momentum has surpassed bullish momentum, and PI may enter a period of stagnation or price correction if buying pressure does not return.
Profit-taking signals for the PI Network coin
The Chaikin Money Flow (CMF) indicator for the Pi Network has dropped significantly, from 0.24 to -0.05 in just two days. These changes suggest that buying pressure is rapidly decreasing, and a distribution process may have begun.
CMF is a volume-weighted indicator that measures the flow of money into the asset. Positive values indicate accumulation (buying pressure), while negative values indicate distribution (selling pressure).
A reading of -0.05 is not a deep bearish signal. However, the drop from a strong positive area may indicate weakening investor confidence, especially after the excitement surrounding the $100 million Pi Network Ventures fund announcement.
If the CMF continues to decline, it could indicate a short-term price correction, in which case traders may take profits after the recent rally.
The fall of the Pi coin to below $1:
Negative EMA signals
The price of PI coin has decreased by 17% in the past 24 hours, dropping below $1, erasing most of its gains from recent weeks.
The current price action aligns with weak technical indicators, as exponential moving average lines converge and indicate the possibility of death crosses. These signals are typically associated with further declines.
If the correction continues, the P coin may test support at $0.90. A break below this level could pave the way to $0.78 or even $0.636.
However, a reversal is not out of the question. If the bulls regain control, PI could return to test resistance at $1.23. A clean move above this level could pave the way for further gains towards $1.67 and $1.798.