Pi Network Price Analysis

• Pi Network’s coin holdings sparked debates about centralization and validator control.
• The short-term price prediction was firmly bearish.

Since the strong rally on the 12th of March that saw the token gain 26.28% in a single day, Pi Network (PI) has been in a severe downtrend.

The 82.8 billion PI coin holdings of the project raised concerns about the network’s centralized nature and its long-term sustainability.

PI has shed 54% since that one-day surge. Technical analysis marked support levels where bulls could force a price bounce. Investors looking to buy can wait for the trend to shift bullishly.

PI Market Structure

The PI market structure remains bearish across timeframes. The 4-hour chart reflected a firm downtrend. The CMF has been below -0.05 for most of the past week, showing steady capital outflows from the market.

The 20 and 50-period moving averages also captured the downtrend well. In recent days, the 20SMA on the 4-hour chart served as a dynamic resistance. A retest of the two moving averages could see PI prices rejected in the coming days.

Using the swing move downward from $1.22 to $0.86 a week ago, Fibonacci retracement and extension levels were plotted. This showed that the Pi Network token was headed for $0.775 and $0.638 in the coming days, marking these as take-profit levels for short sellers.

The price bounce on 21st March turned out to be a rejection from the 78.6% retracement level at $1.14. Since then, PI has been down by 28.38% and has slipped below $0.86 as well. The $0.65 support zone was interesting, as it lined up with the lows from 21st February, marking a key support level.

The Funding Rate was persistently negative over the past week. Short-sellers were paying a premium to long positions, outlining bearish sentiment in the derivatives market.

Open Interest has been flat over the past four days. Market participants seemed content to stay sidelined as PI continued its steady downtrend.

The findings indicated that a move to $0.775 and $0.638 was likely to occur in the coming days.

> Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.