PI Network (PI) reached a record market capitalization of $ 19.2 billion on February 26, but has since fallen to $ 9.2 billion as a sales pressure frames.
PI has corrected 22% in the past two weeks and is down 8% in the last 24 hours only. The negative feeling developed following a net sale after the KYC deadline. Here is an overview of the current technical configuration and what could come for PI.
Pi Network DMI shows that sellers control
The DMI graph of PI shows its ADX seated at 18.3, a level it has maintained since yesterday, signaling a low trend.
Relatively flat ADX reading suggests that the current downward trend lacks dynamics, but it is always present because the indicator remains below the key threshold 25.
The average directional index (ADX) measures the resistance of a trend, with values above 25 indicating a strong trend and values below 20 suggesting a low market or linked to the beach.
Currently, Pi’s + DI fell to 16.1 from 23 days ago, while the -Di went to 26.2 from 19.6 yesterday.
This widening gap between the lines + DI and -DI emphasizes that the sellers regains control, strengthening the existing downward trend.
Unless the + DI begins to recover and the ADX rises above 20, PI can continue to cope with the short-term lower pressure.
Pi Cmf is still in difficulty at negative levels
The CMF of PI is currently at -0.14 and has remained in negative territory in the last two days, after a recent peak of 0.15 only four days ago.
This change marks a clear change in purchasing and sales dynamics, because the indicator is now at its lowest level of last week.
The monetary flow of Chaikin (CMF) measures the silver flow in and outside an asset, combining the price and the volume to assess the purchase or sale of pressure.
A CMF greater than 0 indicates an accumulation (purchase pressure), while a CMF below 0 suggests a distribution (sale pressure).
With the CMF of PI now at -0.14, this indicates that the sellers have gained control, adding weight to the downward trend.
Negative reading may indicate continuous weakness unless the purchase volume resumes in the short term.
Will the Pi network soon fall below $ 1?
PI has been under pressure in recent days after the criticism surrounding the launch of its areas. PI, adding to the negative feeling that started with a major sale after its main migration.
If this corrective trend continues, PI could test the support at $ 1.23, and a break below this level could push the price less than $ 1.20 for the first time since February 22.
However, if Pi Price resumes a positive momentum, it could bounce back and question resistance to $ 1.57. An escape above this level could open the way for new gains to $ 1.82 and $ 1.98.
If the bullish momentum accelerates, PI could potentially exceed $ 2 for the first time since March 1, signaling a significant trend reversal.
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