Pi Network [PI] Has Been in a Severe Downtrend Since Its March 12 Rally

Since the strong rally on the 12th of March that saw the token gain 26.28% in a single day, Pi Network [PI] has been in a severe downtrend.

Pi Network [PI] has been on a turbulent journey in recent times, displaying a strong rally on the 12th of March.

The token gained 26.28% in a single day, but this was followed by a steep downtrend.

Over the past week, the 82.8 billion PI coin holdings by the project raised concerns about the network’s centralized nature and its long-term sustainability.

Since that one-day surge, PI has shed 54%. Technical analysis highlighted support levels where bulls could force a price bounce. Investors looking to buy can wait for the trend to shift bullishly.

The PI market structure remains bearish across timeframes

Source: PI/USDT on TradingView

A glance at the 4-hour chart revealed a firm downtrend. The CMF remained below -0.05 for most of the past week, indicating capital outflows from the market. This correlated with selling pressure.

The 20 and 50-period moving averages also depicted the downtrend effectively.

In recent days, the 20SMA on the 4-hour chart acted as dynamic resistance. Hence, a retest of the two moving averages might result in downward pressure on PI prices in the coming days.

Source: PI/USDT on TradingView

Utilizing the downward swing move from $1.22 to $0.86 a week ago, a set of Fibonacci retracement and extension levels were plotted.

These levels suggested that the Pi Network token was heading toward $0.775 and $0.638 in the upcoming days, serving as take-profit levels for short sellers.

The price rebound on the 21st of March turned out to be a rejection from the 78.6% retracement level at $1.14. Subsequently, PI experienced a 28.38% decline and slipped below the $0.86 support zone.

The $0.65 support zone was noteworthy as it coincided with the lows from the 21st of February, highlighting a key support level.

Source: Coinalyze

The Funding Rate remained persistently negative over the past week. Short-sellers were paying a premium for their positions relative to long positions, indicating bearish sentiment in the derivatives market.

Open Interest remained flat over the past four days. Market participants appeared to prefer staying on the sidelines as PI continued its steady downtrend.

From the analysis, it appeared that a move to $0.775 and $0.638 was likely to transpire in the upcoming days as investors focused on fib levels.