- Pi Network’s price is showing signs of a potential downturn, as it forms a bearish pennant pattern and falls below key technical levels, including the 50-day Exponential Moving Average.
- The delay in the mainnet launch has added to the negative sentiment, with a possible 30% drop to $37 unless the price breaks above the $57.5 resistance level.
The Pi Network, once a promising project in the crypto space, may be headed toward a significant price decline. Recent technical analysis reveals a concerning bearish pattern, signaling that the Pi coin might experience a breakdown in the near future. Let’s explore why the Pi Network price could continue its downward trend and what investors should watch out for.
The Bearish Pennant Pattern: A Warning Sign
Pi Network’s price has formed a bearish pennant pattern on the daily chart, a classic indicator of potential downside momentum. This formation typically follows a sharp price movement, followed by a consolidation period, creating a symmetrical triangle-like shape. As the two lines converge, a bearish breakout is often seen when the price breaks below the trendline.
This technical setup indicates that Pi Network could be gearing up for further declines. Additionally, the price has dipped below the crucial 50-day Exponential Moving Average (EMA), a critical level for identifying trends. A drop below this EMA often signals that the asset is in a bearish phase, and it’s a red flag for the Pi Network price.
Why the Pi Coin Price Could Drop to $37
Adding to the bearish outlook, the MACD (Moving Average Convergence Divergence) indicator has fallen below the zero line, confirming a shift in momentum to the downside. If the price breaks below the ascending trendline formed by key lows since September, the downward pressure could intensify. In such a case, Pi Network’s price could plummet to $37, a significant 30% drop from current levels.
The Impact of the Mainnet Delay
A key factor contributing to this negative sentiment is the delay in the mainnet launch. Pi Network had initially planned to transition from its enclosed mainnet to the full mainnet this year, allowing pioneers to convert their Pi coins into fiat currencies. However, the developers recently announced that the grace period for the KYC verification would be extended to December 31, delaying the much-anticipated mainnet launch.
This delay could diminish investor confidence, especially since the general expectation was that Pi coin prices would rise ahead of the mainnet launch. With the postponement, it appears that the price may continue to fall, reflecting the uncertainty surrounding the project’s timeline.
Hope for a Reversal: Can Pi Network Bounce Back?
Despite the current bearish signals, there’s still hope for a price reversal. If Pi Network manages to break above the $57.5 resistance level, the bearish trend could be invalidated. This would signify a potential upward move, with the next target being $73, where the 61.8% Fibonacci retracement level lies.
However, for now, the Pi Network price remains under pressure, and investors should closely monitor key levels like the ascending trendline and the $57.5 resistance to assess whether a breakout could take place.
Conclusion: Caution Advised
With the Pi Network price showing multiple bearish signs, including the formation of a bearish pennant pattern, a move below critical trendlines, and delays in the mainnet launch, caution is advised. If the price fails to recover, it may continue its downward trajectory, making it crucial for investors to stay alert and consider the risks involved.
