PI Token Price Crashes 25% After Launch of $100M Startup Fund, Raising Concerns About Its Short-Term Price Trajectory

Despite this major initiative, the market response has been lackluster, raising concerns about the PI token's short-term price trajectory.

The price of PI has dropped by 25% in the past 24 hours, marking a sharp decline just one day after the launch of its $100 million startup fund, Pi Network Ventures.

This major initiative was supposed to help new Web3 startups in blockchain, decentralized applications, artificial intelligence, and other domains. Despite this initiative, the market response has been lackluster, raising concerns about the PI token's short-term price trajectory.

As Block Decoded reports, PI’s price is at a crucial juncture that could determine the next leg of its market cycle.

The PI/USD one-day chart readings suggest that this decline may not be over. As of writing, PI’s price is on the verge of dipping below its 20-day Exponential Moving Average (EMA).

The 20-day EMA measures an asset’s average price over the past 20 trading days, weighting recent prices. When an asset’s price is poised to break below this key moving average, it signals weakening short-term momentum and a potential shift to a bearish trend.

A break below this threshold could be pivotal, especially after PI’s recent bullish climb between May 8 and May 13.

Moreover, PI’s Balance of Power (BoP) is currently negative, highlighting the selloff trend among market participants.

The BoP indicator measures the strength of buyers versus sellers by comparing closing prices to the trading range. When it is in the negative territory like this, sellers are said to be pushing prices lower.

Risking Breakdown Toward $0.40

PI’s decisive break below its 20-day EMA would confirm the bearish shift in market sentiment. The 20-day EMA, currently acting as dynamic support at $0.80, has cushioned recent price pullbacks and attracted buying interest.

Therefore, a close below this level would invalidate that support and reinforce the prevailing bearish outlook. It would confirm the increased selling pressure among PI token holders and hint at the potential for a deeper correction soon.

In this scenario, PI could revisit its all-time low of $0.40.

However, if the bulls regain market dominance, they could drive PI’s price toward $1.01.