Pi Network extends weekly loss to 15% – what will PI do next?

The prolonged decline of Pi Network has entered its second week, with the value of the token dropping nearly 16% amid a sluggish overall market. As macroeconomic uncertainty increases and the scheduled daily token unlocks of Pi continue to negatively impact investor sentiment, bearish pressure seems to show no signs of stopping.

Sellers gain the upper hand as PI falls below the key threshold

Since reaching an all-time high of 3 dollars on February 25, PI has recorded consecutive weekly losses, with no significant buying pressure to halt the decline.

On the daily chart, indicators from the (Moving Average Convergence Divergence (MACD) ) show that bearish momentum is becoming increasingly pronounced. At the current time, the MACD line of PI (in green) is below the signal line (in orange), indicating that buying activity is weakening. Traders often view this situation as a sell signal, which could increase bearish pressure on the price of PI.

MACD of PI | Source: TradingViewMoreover, the negative Balance of Power (BoP) indicator of PI shows that sellers are still in control of the market. At the time of writing, this index stands at -0.12. The BoP indicator measures the strength of buyers against sellers in the market, helping to identify changes in momentum. When the BoP value is positive, buyers dominate and drive new profits. Conversely, negative BoP indicators suggest that sellers are dominant, with little or no resistance from buyers, indicating prolonged bearish pressure and a weakening of investor confidence.

BoP of PI | Source: TradingViewFor PI, negative BoP indicators further reinforce bearish outlook, suggesting that selling momentum may continue unless new demand emerges.

Pi Network faces difficulties below the important EMA

Currently, PI is trading at $0.53, below the 20-day exponential moving average (EMA), which creates dynamic resistance above its price at $0.56.

PI Price Analysis | Source: TradingViewThe 20-day EMA measures the average price of an asset over the last 20 trading days, with a higher weighting for recent prices. When the price of an asset trades below the 20-day EMA, it signals short-term bearish momentum and the potential for further declines. If the bears maintain control, they could push the price of PI back to the all-time low of $0.40.

However, a recovery could help the Pi Network token surpass the 20-day EMA and head towards the level of $0.79.

Mr. Giáo