Pi Network (PI) Plunges by Double Digits

Despite some strength across the broader market, investor sentiment toward PI remains weak

Pi Network (PI) has seen a steeper decline than usual, dropping by double digits over the past week, even as the broader crypto market shows signs of recovery.

As of Thursday (August 10) morning, PI’s market cap stands at $4.1 billion, having decreased by 10%. This new all-time low comes amid reports of the token facing intense selling pressure.

With bearish pressure intensifying, the token could soon revisit its all-time low near $0.40.

Relative Strength Index Shows Unrelenting Bear Market

Despite some strength across the broader market, investor sentiment toward PI remains weak, with technical indicators suggesting that its price decline could continue.

The Relative Strength Index (RSI), a key momentum indicator that tracks an asset’s overbought and oversold market conditions, continues to drop, indicating falling demand and growing selling pressure.

At press time, PI’s RSI is in a downtrend at 39.78. This RSI reading indicates weakening momentum and positions the token just above oversold territory, suggesting continued selling pressure could trigger further losses.

The lower RSI is, the more oversold an asset becomes. When RSI falls below 30, it signals no buyers in the market, which could lead to a price drop.

On the other hand, RSI readings above 70 indicate an asset is in overbought territory and might be due for a correction.

On Thursday morning, the RSI signaled that PI is not yet oversold, despite the price declines.

On-Balance Volume Shows No Accumulation

The fact that PI’s on-balance volume (OBV) has decreased further supports the bearish outlook above.

This indicator, which measures buying and selling pressure by tracking volume flow relative to price movements, is at -1.26 billion at press time, falling by 15% in the past week.

When OBV increases, it means that more volume is tied to buying than selling, which signals that the market price is likely to rise. Conversely, when OBV decreases like this, more volume is tied to selling than buying. This indicates weakening investor confidence and potential for further price declines.

The lower the OBV, the more likely it is that an asset’s price will continue to decrease.

Chaikin Money Flow Plumbs New Depths

Pluming new lows, PI’s Chaikin Money Flow (CMF) supports the bearish outlook above.

At press time, this indicator, which tracks how money flows into and out of an asset, is below the zero line at -0.15.

This negative reading reflects the strength of the sell-side pressure in the PI spot markets.

If this trend persists, PI could revisit its all-time low of $0.40.

However, a bullish reversal in the current trend could propel PI’s price to $1.01.