PI Continues Downtrend, Slips 5% in 24 Hours
Despite a general market rally, PI has experienced a decline, indicating weakening buying pressure as traders shift focus.
Pi Faces Challenges Amid Decreased Market Participation
Key technical indicators suggest a bearish outlook for Pi. Its On-Balance-Volume (OBV), which measures buying and selling pressure, has fallen significantly, leading to concerns over market participation and liquidity.
Currently, PI’s OBV is at an all-time low of -845.93 million, down over 2000% since early March.
A declining OBV signifies diminished buying activity and rising selloffs, indicating that more traders are selling PI rather than acquiring it, which heightens downward price pressure.
Additionally, PI remains trapped in a descending parallel channel, illustrating its ongoing bearish trend. Analysis of the PI/USD one-day chart reveals it has continued this pattern since hitting an all-time high of $3 on February 26.
This channel, characterized by two sloping downward trendlines, depicts a series of lower highs and lower lows, reinforcing the sustained bearish sentiment. Sellers dominate, obstructing any chances for upward momentum.
The pattern suggests PI’s price may continue its decline until it breaks out of the channel or finds robust support.
Pi Risks Further Decline Below $0.62
Increasing selling pressure presents the risk of PI dropping below the descending channel. Such a move could escalate its downtrend, potentially pushing the price towards $0.62.
Yet, if buyers regather strength and purchasing activity rises, there’s a possibility for PI to reverse its trend and rally towards $1.13.
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