40 % Off May Highs, Pi Network Now Tests Key Support Level After Holder Exodus

Pi Network has experienced significant volatility in recent weeks, resulting in more losses for investors than gains. After an initial surge, the altcoin has now faced substantial declines, with the ongoing exit of investors adding pressure. 

The holder exodus has been particularly noticeable throughout the entire month, further contributing to Pi Network’s struggles.

Pi Network Continues To Lose Investors

Since the beginning of the month, Pi Network has primarily seen a trend of investors exiting the market. Only a few instances have shown more additions than exits, reflecting waning confidence among investors. This pattern suggests that Pi Network is losing traction, and many are choosing to liquidate their positions rather than hold long-term.

The lack of consistent investor support signals that the altcoin may be struggling to maintain its appeal. With many exiting, Pi Network’s ability to sustain its previous momentum is in question, and investor sentiment continues to deteriorate.

Pi Network Holder Change. Source: Holderscan

Technical indicators show a shift in momentum for Pi Network. The Relative Strength Index (RSI) recently slipped below the neutral 50 line after hovering near it for several days. This bearish move suggests that Pi Network’s momentum has shifted from bullish to bearish, increasing the likelihood of selling pressure.

As the RSI continues to trend lower, it signals that Pi Network could be facing a period of extended losses. Broader market cues turning negative only add to the pressure, indicating that the cryptocurrency may struggle to regain positive momentum in the near term.

Pi Network RSI. Source:  TradingView

PI Price May Face Decline

Pi Network is currently trading at $0.74, up 23.6% since the start of the month, but it has also experienced a 40% drop from the highest close in May. Investors who bought in during FOMO (fear of missing out) or near the market top are now facing significant losses as the price continues to struggle.

If the current trend continues, Pi Network price losses could deepen. The price may drop further from $0.74, breaking through the key support level at $0.71 and potentially reaching as low as $0.61. This would mark a more significant decline and signal that bearish sentiment is strengthening.

Pi Network Price Analysis. Source:  TradingView

However, if Pi Network manages to hold above the $0.71 support, there is still a possibility for a bounce. A recovery towards $0.87 could help the altcoin regain some stability, and breaching this level would invalidate the current bearish thesis, signaling the potential for a trend reversal.