Pi Network plummet 15% in the week - What is the cause of the decline?

Pi Network (PI) is showing technical weakness, falling nearly 15% over the past seven days and 7% over the past 24 hours, with market capitalization currently at 4.98 billion USD.

The trading volume has surged by 33% in the past day, reaching 123 million USD, signaling increased activity amid a deeper downward trend.

Key indicators such as ADX, CMF, and EMA structure all indicate bearish momentum, with increased selling pressure and PI struggling to maintain support levels. Unless momentum changes, PI may continue to weaken in the upcoming period.

The downward trend is strengthening

The Directional Movement Index chart ( of Pi Network ) shows that the Average Directional Index ( increased sharply from 11.46 to 21 in the previous day.

ADX measures the strength of a trend. An ADX below 20 indicates a weak or non-trending market, while readings above 20 indicate that the trend is starting to strengthen.

With the ADX of PI currently exceeding this threshold, the data suggests that a stronger volatility move towards either a bullish or bearish direction may be developing.

![])https://img.gateio.im/social/moments-465090cdb6de7f90d60dd11472cb7dac(DMI of PI | Source: TradingViewLooking deeper, +DI )Positive Directional Indicator( has fallen from 20.93 to 13.21, while -DI )Negative Directional Indicator( has surged to 31.92 from 23.48.

With -DI clearly dominating, it signals increasing downward pressure on PI. When -DI rises above +DI along with a strengthening ADX, this often confirms that the downtrend is gaining momentum.

In conclusion, the indicators suggest that the PI may be entering a stronger downtrend and traders should keep a close eye on the price movement.

Indicators show strong selling pressure

The Chaikin Money Flow )CMF( of Pi Network )PI( has fallen sharply to -0.20, down from 0.08 three days ago and -0.08 just one day ago.

CMF is a volume-based indicator that measures the flow of money in and out of an asset over a specific period, typically 20 or 21 days.

Values above 0 typically indicate buying pressure and accumulation, while values below 0 indicate selling pressure and distribution. A CMF index exceeding ±0.10 is often considered a strong movement, with deeper negative values indicating a continuous outflow of money.

![])https://img.gateio.im/social/moments-7bb695f44e51dabcc18d8543fe39054a(CMF of PI | Source: TradingViewWith the CMF of PI currently at -0.20, the lowest level since May 17, this is a strong signal indicating that sellers are in control of the market.

This reflects an increasing outflow of capital from assets, and when combined with the recent weakness in prices, it reinforces the bearish outlook.

If the CMF continues to fall or remains at an extremely negative level, any recovery effort may encounter strong resistance due to a lack of support.

PI price heads towards lower support level

The Exponential Moving Average indicators )EMA( of PI are also weakening, with the short-term EMAs positioned below the long-term EMAs, a clear sign that the bears are still in control of the market.

The increasing gap between these EMA lines reinforces the strength of the current downtrend. If the PI continues to slide deeper, the price may return to the next support level at $0.66, and losing this level could open the door for a decline toward $0.57.

![])https://img.gateio.im/social/moments-f70c6e16b46879e274ae6993a91accf7(Price analysis of PI | Source: TradingViewConversely, if PI reverses its current trajectory, the first important resistance level to watch is $0.727. A breakout above this level could signal a short-term recovery and potentially push the price higher towards $0.86.

However, until the short-term EMAs begin to flatten out or cross above the long-term EMA, any bullish attempts may still face selling pressure.

Vincent