Pi Network Sellers are in Control: Whats Next for PI?
- Pi Networks price continues its decline, dropping 3.52% in 24 hours as sellers maintain control after a previous rally.
- Analysis confirms the ongoing downtrend with the technicals hinting at slowing selling, but no strong reversal.
- Analysts suggest high-risk short-term buy opportunities based on weak buying signals.
The Pi Network token (PI) continues to struggle against selling pressure. According to TradingView data, the token currently trades at $0.6112 after dropping in value by 3.52% in the last 24 hours.
It has continued its downward trend since reaching a high earlier this year. The chart showed that PIs price was on an uptrend at the start of last month, reaching about $2.50. However, these price gains didnt last long.
Since then, the Pi Network token has been on a decline, with sellers gaining momentum to push down the price further.
Source: TradingView
Pi Network: Technical Analysis Reveals Ongoing Downtrend
The technical indicators confirm this continued price downtrend. The relative strength index (RSI) is at 40.98 at the time of writing. This indicates that the coin is losing any buying momentum.
Usually, an RSI below 30 suggests an oversold market where a reversal towards the upside could happen. However, PI is yet to reach that zone. Also, the MACD is slightly above zero at 0.0189 while its signal line is still in the negative at -0.0752.
The slight positive value of the MACD is proof that there is a drop in selling momentum. However, theres no clear indication that a strong upward momentum is about to start.
In addition, the small green bars in the MACD histogram mean that theres weakness in the downward momentum. However, theres no reversal in selling pressure yet.
In contrast to the massive increases in trading volume which PI recorded during its March rally, theres currently a significant drop in this volume. Such a low trading volume suggests that trader interest in the Pi Network has reduced.
These usually lead to slower price movements, at least in the short term.
Analysts Suggest Short-Term Buys Amidst Cautious Bearish Outlook
Analysts advise traders seeking short-term trading opportunities to take positions now based on the presence of little buying signals. However, they must understand that the Pi Network market is currently a high risk, and its in a cautious bearish phase.
Traders can continue to monitor the RSI till it gets close to 30 or for the MACD to become more clearly positive. These are points that suggest that the tokens price is about to move in an upside direction.
Read more: https://www.tronweekly.com/pi-network-sellers-are-in-control-whats-next/
Text source: TronWeekly
