The Pi Network Upgrade Cannot Increase the Price of PI When the Price Decline Dominates

Pi Network has launched the Linux Node and announced plans to upgrade the protocol from version 19 to 23, marking an important technical advancement for the blockchain project. However, despite these developments, the PI token has not shown any significant bullish movement in the past day, continuing to trade within a narrow sideways range. PI shows a modest bullish level, but the lack of support from buyers raises concerns. Today, this token has recorded a modest bullish of 2%, reflecting widespread buying activity in the market. However, the daily trading volume has decreased by nearly 20%, indicating that selling pressure is still present among investors.

When the price of an asset increases while trading volume decreases, it signals that the price increase is not supported by strong buying demand. In such cases, a small number of transactions can push the price up, but the lack of widespread participation indicates that the bullish trend may not be sustainable. For PI, this suggests that although some investors are buying in, many remain hesitant, causing the overall bullish momentum of the market to remain weak. Moreover, the negative indicators from the Elder-Ray index confirm this negative outlook, suggesting that market sentiment remains cautious despite the protocol upgrade. At the time of writing, this index stands at -0.0237.

The Elder-Ray Index measures the strength of the buyers ( pushing the price up ) and the sellers ( pushing the price down ) in a market. A negative value indicates that the sellers are dominant, showing that selling pressure outweighs buying pressure. The Elder-Ray index of PI has continuously recorded negative values since August 14, indicating that market sentiment continues to weaken. This prolonged bearish trend reflects the challenges of the token in attracting demand. PI Aims for a Bullish Level of 0.37 USD, But Sellers May Push the Price Down Below 0.32 USD At the time of writing, PI is trading at $0.34, fluctuating just above the support level of $0.32, marking the all-time low for this token. If bearish pressure increases, the price may retest this level or even break below it to establish a new low.

On the contrary, PI could rise to $0.37 if new demand increases.