Pi Network Analysis

• Tokenomics and Validators
  PI’s tokenomics and the network’s limited number of active validators raised major concerns among investors.
• Bearish Short-term Outlook
  Short-term price action indicates traders are leaning bearish.

Pi Network (PI) has faced debates regarding its decentralization and long-term sustainability. The tokenomics have not provided encouraging signs for investors, and technical analysis suggests a firmly bearish short-term outlook.

Pi Network Token Prediction

The PI token is projected to fall to $1 and possibly lower.

Over the last three days, the price action has displayed increasing bearishness. Earlier this month, the psychological $2 level served as resistance, followed by a lower high at $1.87 and a lower low at $1.23.

These levels have become critical markers for traders. Recently, PI dropped below the previous lower low, indicating a broken bearish market structure.

From February’s prices, supports were noted at $0.93 and $0.65, while the $1 level may slow losses but is unlikely to offer strong support.

Sellers have dominated the market, pushing the On-Balance Volume (OBV) to new lows, suggesting a continuing downtrend into March. The Awesome Oscillator signaled strong bearish momentum. Although trading volume surged in a bullish attempt to halt the decline, the efforts appear unsuccessful thus far.

The Funding Rate was negative for most of the past five days, indicating bearish sentiment and a inclination to short the PI token in the derivatives market. Short sellers were compensating long positions, showing that most traders leaned towards bearish sentiment.

This may create conditions for a short-term price bounce to seek liquidity, but the overall trend is likely to remain bearish due to low demand.

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