Pi Network (PI) Market Cap Collapses Below $1 Billion… Will Even $0.0819 Collapse?

▲ Pi Coin (PI)/ChatGPT generated image ©

Pi Network (PI) has continued its bearish trend for a third consecutive day, following a 7% plunge for two days, causing its market capitalization to fall below the $1 billion mark. Amid pressure on investor sentiment from the failure of the Clarity Act, a US cryptocurrency market structure bill, to advance in the Senate, and the Federal Reserve's interest rate hike, the technical defense of the $0.0819 support level has emerged as a key variable determining further declines.

According to investment media FXStreet on September 17 (local time), Pi Network traded around $0.083 on Thursday, continuing its bearish trend after a 7% decline for two consecutive days. Regulatory and macroeconomic uncertainties were highlighted simultaneously as the Clarity Act failed to advance to the cloture vote stage in the US Senate plenary session on Tuesday, and the Fed raised its benchmark interest rate by 0.25 percentage points on Wednesday. The Pi Core Team's recently introduced SoloHost Apps, aimed at expanding ecosystem development and activity, were also overshadowed by these market headwinds.

The overall cryptocurrency market's Fear and Greed Index remained above the neutral zone at 63 on Thursday, maintaining risk-on sentiment. However, high-risk, small-cap altcoins like Pi Network experienced strong selling pressure, falling over 14% in the past two days. According to CoinMarketCap, PI's market capitalization fell below $1 billion on Wednesday, which the media interpreted as a sign of weakening investor confidence.

The technical trend also leans bearish. PI declined for three consecutive days until Thursday, breaking below its 50-day Exponential Moving Average (EMA) of $0.0936 on Wednesday. Above the current price are the 100-day EMA at $0.1037 and the 200-day EMA at $0.1284. The Relative Strength Index (RSI) has dropped to 34, near the oversold territory, and the Moving Average Convergence Divergence (MACD) has broken below both the zero line and the signal line. The expanding histogram in the negative territory also indicates continued selling pressure.

On the downside, the 23.6% Fibonacci retracement level at $0.0819, based on the movement from $0.1341 to $0.0704, is the immediate key support. A definitive break below this price could lead to a further decline to the previous low of $0.0704, and sustained selling pressure could even open up the possibility of setting a new all-time low. Conversely, if a rebound occurs, the 50-day EMA at $0.0936 is suggested as the first target, followed by the 50% Fibonacci retracement level at $0.0971 and the 100-day EMA at $0.1036 as subsequent resistance levels.

Despite its efforts to expand the ecosystem, Pi Network has been unable to escape the short-term bearish trend amidst external headwinds such as the failure of the Clarity Act to advance in the Senate and the Fed's interest rate hike. With its market capitalization falling below $1 billion and technical indicators showing a selling bias, the crucial question now is whether it can hold the $0.0819 level.

*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.*