Pi Network (PI) declines for 3 consecutive days… Risk of hitting all-time low increases

▲ Pi (PI)/ChatGPT generated image ©

Pi Network (PI) has declined for three consecutive trading days, increasing the likelihood of retesting its all-time low. Even as overall investor sentiment in the cryptocurrency market recovers, PI continues to face selling pressure, failing to escape its relative weakness.

According to investment media FXStreet on July 6 (local time), Pi Network traded below $0.115 today, extending its decline for the third consecutive day. While overall market risk aversion has eased, with Bitcoin recovering to $63,000 and the CoinMarketCap Fear & Greed Index rising from 17 last week to 29, PI has not benefited from this sentiment.

Bearish sentiment was also evident in the derivatives market. According to CoinAnk, PI's long/short ratio fell to 0.66. A long/short ratio below 1 indicates that more investors are betting on a decline than on an increase, suggesting continued selling dominance in the short term. The media analyzed that the absence of clear positive news to stimulate buying from retail investors is also contributing to the bearish outlook.

The technical trend is also negative. PI is trading below the downtrend line near $0.1278, and both the 50-day exponential moving average (EMA) at $0.1345 and the 200-day EMA at $0.1793 are well above the current price. This suggests that the long-term downtrend remains intact, the media explained.

Momentum indicators also pointed to weakness. The Moving Average Convergence Divergence (MACD) continued its decline below the signal line, indicating strengthening selling momentum. Conversely, the Relative Strength Index (RSI) dropped to 29, entering the oversold territory. The media assessed that despite the oversold signal, selling pressure remains dominant, making it difficult to rule out further declines.

In the short term, the all-time low of $0.1111 is considered the most crucial support level. If this price is breached, further declines to the S1 pivot point of $0.1010 are possible. Conversely, even if a rebound occurs, the downtrend line near $0.1278 is likely to act as strong resistance, so a cautious approach is needed for the time being, the media predicted.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*