PI Network (PI) aims to reconsider the level of $0.40 as bearish pressure increases.

Pi Network (PI) has experienced a downward trend since February 26, losing 72% of its value as pessimistic sentiment continues to weigh on the token.

The pessimistic pressure continues to increase, indicating that it may be preparing to enter a new recession phase.

Pi Network is at risk of continuing to fall

The one-day chart evaluation of PI shows that holders continue to distribute. At this time, the Balance of Power (BoP) indicator of PI is at a negative level, reflecting selling pressure in the market.

PI BoP | Source: TradingViewThe BoP indicator measures the strength of buying pressure compared to selling pressure by comparing the closing price with the trading range over a certain period. When BOP is negative, it indicates that sellers are dominating the market, suggesting downward pressure on asset prices.

Moreover, the establishment of the Chaikin Money Flow (CMF) of PI supports a pessimistic outlook. Currently, this figure is below the central line at -0.12.

PI CMF | Source: TradingViewThe CMF indicator measures the buying and selling pressure of an asset. A negative CMF indicates that the asset is experiencing more selling pressure than buying pressure. This means that PI traders are distributing rather than accumulating, signaling a bearish sentiment and confirming the downward trend of the token.

Sellers are in control, but PI still has the potential to recover to $1.01

Currently, PI is trading around $0.63, below the dynamic support level established at $0.93 by its Super Trend indicator.

The Super Trend indicator helps traders determine the market direction by placing a line above or below the price chart, based on the volatility of the asset.

When the price of an asset trades below the Super Trend line, it signals a downward trend and suggests a potential weakening. If the fall of PI is stronger, it may return to the bottom (ATL) $0.40.

The Super Trend indicator of PI | Source: TradingViewHowever, if demand returns, PI may surpass the resistance level at $0.86 and surge to $1.01.

You can see the price of PI here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do their own research before making any decisions. We are not responsible for your investment decisions.

Vietnam Cuong