Key takeaways
- PI is down 2% in the last 24 hours and could drop below $0.22 if the bearish trend continues.
- The technical outlook indicates short-term risk.
PI could dip lower amid poor technicals
Pi Network (PI) has been underperforming over the past three days and risks dropping below a critical support trendline. The on-chain data indicates an increase in supply pressure as Centralized Exchanges (CEXs) experience a surge in inflows.
Data obtained from PiScan reveals that user deposits over Pi Network’s Know Your Business (KYB)-verified CEXs totaled 2.75 million PI tokens in the last 24 hours. The deposit is far greater than the withdrawals of 1.76 million tokens. Thus, indicating a daily net inflow of CEXs, suggesting that investors might be selling some of their stash.
Will Pi Network drop below the $0.22 support line?
The PI/USD 4-hour chart is bearish and efficient as PI has lost 2% of its value in the last 24 hours. The cryptocurrency is retracing toward a local support trendline formed from the October 22 and November 4 lows.
At press time, PI is trading at $0.2267, with a bearish trend currently in play. The technical indicators are bearish, suggesting further downward movement. The RSI of 37 shows that PI is heading into the oversold region if the trend continues. The MACD lines are also within the bearish region.
If the trend persists, PI could decline below the Monday low of $0.2204, with another major support just around the $0.1919 region.
However, if the bulls regain control, PI could reclaim last week’s high at $0.2841. An extended bullish run would allow PI to eye the August 1 low at $0.3220.
However, the current market conditions remain bearish, with PI expected to underperform over the next few days.
