Pi Network sheds 15% in a week, technical indicators show price could drop further

Pi Network is trading at $0.6894 at the time of writing, marking a 6% daily loss and a 15% slide over the past 7 days.

After reaching a peak of almost $3 in February, Pi Coin ( PI ) has now dropped more than 75%  and is struggling to maintain any lasting momentum. May began on a promising note for Pi holders. The price surged almost 200% in a matter of days, reaching a local high of $1.67. 

But what followed was a steep and steady decline that erased most of those gains. As traders weigh in on their next move, PI is hovering just above a crucial support level and is trapped in a narrow weekly range between $0.688 and $0.816.

Trading volume has increased despite the decline, rising more than 42% in the past day to over $158 million, suggesting increased market activity. 

On-chain data, however, show an increase in exchange inflows, indicating that more tokens are being positioned for sale. Selling pressure is anticipated to continue as 263 million PI are scheduled to unlock in June, followed by 233 million in July and 132 million in August.

From a technical standpoint, the trend is decisively bearish. All of the major moving averages, such as the 10, 20, 50, and 100-day EMAs and SMAs, are above the price. After a spike in volatility in early May, the Bollinger Bands are tightening. PI is now trading near the lower band, indicating that selling pressure is still present.

Pi Coin price analysis. Credit: crypto.news

Momentum indicators support the bearish view. The moving average convergence divergence is still negative and below the signal line, suggesting that the downward trend might continue. Furthermore, the awesome oscillator, which gauges market momentum by looking at recent price movements, is in the red, indicating that the downside pressure is still present.

At 43.6, just below neutral territory, the relative strength index shows a weak level of bullish conviction. Meanwhile, the stochastic RSI sits near 2.77, deeply oversold, yet without any reversal signal, this alone does not justify a long position.

The average directional index is currently at 29.9, just below the crucial 30 level. The ADX shows the strength of the trend but not its direction. In this case, it suggests that although the downtrend is still quite strong, it might be nearing its end. 

A persistent breach above the $0.75–$0.78 range may cause sentiment to change. If not, $0.60 and $0.50 are the next significant support zones. The path of least resistance is still downward as more tokens come into circulation and the demand fails to keep up supply. 

Pi Network is attempting to create long-term value despite these short-term risks. The recently launched $100 million Pi Network Ventures fund is focused on projects with real-world applications in e-commerce, fintech, gaming, and artificial intelligence. However, until fundamentals translate into increased demand, the technicals remain weak.