While Bitcoin continues to set new highs and attract global investors’ attention, Pi Network (PI) is going through a challenging period as its price falls below $1 and shows no clear signs of recovery. The latest technical signals and market data suggest that the altcoin may face many hurdles on its journey back to this important price level.
Bearish Trend Dominant
Currently, Pi Network is trading around $0.77 – significantly lower than the psychological $1 mark. The ADX (Average Directional Index) has risen to 32, surpassing 25 – a sign that the trend is strengthening. However, what is worrying is that the current trend is negative, indicating that selling pressure is dominating the market.
Along with that, the Parabolic SAR indicator continues to send bearish signals when the indicator dots appear above the price candles - a typical signal that the downtrend may continue in the near future. These signals are making traders more cautious, while increasing the possibility of further price corrections.
Weakening correlation with Bitcoin
Another important factor affecting the price movement of Pi Network is the decreasing correlation with Bitcoin. According to the latest data, the correlation coefficient between PI and BTC is currently only 0.25 and continues to weaken. This shows that Pi Network is operating more and more independently instead of moving according to the market inertia led by Bitcoin.
This is a noteworthy signal, especially when Bitcoin has just set a new historical high and has the prospect of continuing to increase. While many other altcoins are taking advantage of BTC's breakout to create waves, Pi Network seems to no longer benefit from the overall market momentum, increasing the risk of falling behind in the recovery race.
PI Price Scenario: Hope and Risk Intertwined
At the current price, Pi Network needs to increase by about 28% to return to the $1 mark. However, with current technical signals and weak market sentiment, this target becomes difficult to achieve in the short term. If selling pressure continues to increase and the price breaks the important support level at $0.71, Pi Network could continue to fall further to the $0.61 area - a new low that will further weaken investor confidence.
Conversely, if the market records positive factors and buying power returns, Pi Network will need to overcome the resistance levels at $0.78 and $0.87 respectively. Breaking these two resistance levels will help neutralize the current downtrend and open the door for a recovery cycle towards the $1 mark once again.
Pi Network is in a difficult period with a lot of pressure from both technical and market psychology. Losing the $1 mark in the context of Bitcoin's price increase shows the limits of this altcoin's resilience. To regain momentum and investor confidence, Pi Network needs to have a significant improvement in demand as well as positive changes in general market conditions. In the short term, investors should closely monitor support and resistance zones to come up with appropriate strategies.
