- Pi Network price is under pressure as PI tests support within a bearish flag pattern.
- Weakening MACD and Parabolic SAR signals, along with strongly bearish market sentiment, point to a higher risk of further losses.
Pi Network price is facing renewed selling pressure after PI lost around 13% at the time of writing. The decline has pushed PI toward an important support area, while several technical indicators continue to point to weakness in the near term.
The latest price action has also formed a bearish flag pattern, raising the possibility of another leg lower if support fails to hold.
PI Tests Support as Bearish Flag Takes Shape
PI has already gone through the initial decline that typically forms the first part of a bearish flag. The price then entered a period of consolidation between descending and parallel trendlines.
The next move could depend heavily on the support line below the current price. A break beneath that level could strengthen the bearish setup and expose PI to further losses. However, holding support could keep the consolidation pattern intact and delay another decline.
Technical indicators are also adding pressure to the current setup.
MACD and Parabolic SAR Point to Selling Pressure
The Parabolic Stop and Reverse (SAR) indicator is currently showing dots above PI’s price. This positioning generally signals a bearish trend and suggests that sellers remain in control of the short-term price action.
The MACD is also flashing a warning. The MACD line has crossed below the signal line, forming a bearish crossover that indicates weakening buying pressure.
The histogram has also expanded further into the red, showing that bearish momentum is increasing. If the MACD lines move deeper into negative territory, PI could face additional downside pressure.
Bearish Sentiment Adds to PI’s Downside Risk
Market sentiment is providing another indication of caution around PI. CoinMarketCap’s sentiment tracker showed a reading of -7.09 at the time of writing, placing sentiment firmly on the bearish side of its -10 to 10 scale.
Such a reading indicates that negative sentiment is dominating the market. If selling pressure continues while PI remains near support, the cryptocurrency could struggle to produce a sustained recovery.
For now, PI’s price structure, technical indicators and market sentiment are all pointing toward continued weakness. The key level to watch remains the current support zone, as a breakdown could reinforce the bearish setup, while a successful defense could give PI room to stabilize.
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