- PI Network token price dropped 25% in 24 hours, signaling strong selling pressure and risking a break below the crucial 20-day EMA support near $0.80.
- If this support fails, PI could fall further toward its all-time low of $0.40, though a rebound to $1.01 remains possible if buyers regain control.
PI Network’s token price recently plunged by 25% within just 24 hours, sparking concerns about its short-term momentum despite the launch of its ambitious $100 million Pi Network Ventures fund. This sudden decline signals possible challenges ahead for the cryptocurrency’s price recovery and investor confidence.
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Bearish Signals Emerge After Major Fund Launch
The price drop came shortly after Pi Network introduced its $100 million startup fund aimed at fostering new projects within its ecosystem. However, instead of boosting investor enthusiasm, the market reaction has been tepid, with the PI token showing signs of weakening.
Technical analysis highlights that PI’s price is approaching a critical support level — the 20-day Exponential Moving Average (EMA). The 20-day EMA tracks recent price action, giving more weight to the latest days, and serves as a vital indicator of short-term trends. PI slipping below this average could mark the onset of a sustained bearish phase.
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Balance of Power Points to Strong Selling Pressure
Adding to the negative outlook is PI Network’s Balance of Power (BoP) indicator, currently registering at -0.14. The BoP measures whether buyers or sellers dominate the market by comparing closing prices to the trading range. A negative reading like this confirms that sellers are firmly in control, exerting downward pressure on PI’s price.
This strong selling momentum raises the likelihood that PI could continue to fall, potentially triggering a further correction that erodes recent gains made between May 8 and May 13.
Potential for Deeper Decline to $0.40
If PI decisively breaks below its 20-day EMA support — now near $0.80 — it would confirm a bearish reversal. This dynamic support level has so far cushioned price drops and attracted buyers. Losing it would signal waning investor confidence and could pave the way for PI to revisit its all-time low of $0.40.
Such a move would represent a steep correction from current levels, reflecting intensified selling pressure among token holders.
Bullish Scenario Remains Possible
Despite the bearish signals, the market is not yet settled. If buyers regain control and push PI back above the 20-day EMA, a recovery toward $1.01 could be possible. This would require renewed optimism and demand for the token, potentially supported by positive developments from Pi Network Ventures.
PI Network’s recent 25% drop highlights the fragile state of its price momentum. Technical indicators warn of a possible prolonged downtrend unless the token can hold above key support levels. Investors should watch PI’s interaction with the 20-day EMA and Balance of Power closely to gauge the next phase of this evolving price story.
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