The PI price saw its hollow of $ 0.40 last Friday. Although it was slightly rebounded to close the day at $ 0.58, the token has resumed its downward trend this weekend and in the new week.
With a weakening of purchase pressure and unlocking of tokens up, how much can the price of the Pi token go to the second quarter?
Unlocking heavy tokens and low institutional interest threatens the Pi recovery
The growing pi unlocking calendar represents a major threat to all hopes of a significant short -term price rebound. Over the next 30 days only, 337 million Pi tokens valued at around $ 185 million will be released in circulation, per piscan.
This increase in supply continues to weigh heavily on the feeling of the market and adds downward pressure to the already fragile price action of the token.
The unlocking of the tokens refers to the progressive release of tokens previously locked or acquired on the market, often by following a predefined calendar. These unlocks introduce a coherent flow of potential sales pressure for PI, which still lacks exchange announcements on the main platforms like Binance and Coinbase.
In addition, the relative force index of the room part (RSI) indicates a drop in demand, referring to new price reductions. At the time of the press, this amounts to 33.54, reflecting the reduced purchase interest.
The RSI indicator measures excessive market conditions and occurs as an asset. It varies between 0 and 100. The values greater than 70 suggest that the asset is overflowed and due for a drop in prices, while the values less than 30 indicate that the assets are occurring and can attend a rebound.
At 33.54 and falling, the Pi RSI signals weaken the momentum, strengthening the downward perspective.
In addition, the persistent decrease in the intelligent pi monetary index (SMI) suggests that institutional capital is getting more and more from the asset. When writing these lines, it amounts to 1.28, falling 10% in the last 30 days.
SMI of an asset follows the activity of experienced or institutional investors by analyzing market behavior during the first and last hours of negotiation.
When the indicator increases, it indicates an increase in the activity of purchase of these investors, reporting growing confidence in the assets. Conversely, when he decreases, he suggests selling an activity or reducing the confidence of these investors, pointing to expectations of lower prices.
Pi faces the mounting pressure
Since May 21, the PI price has systematically negotiated below a descending trend line, a model that signals a sustained lower momentum. This configuration emerges when the sellers dominate the market, forming lower peaks as long as time and eliminating any significant rebound attempt.
The continuous presence of PI under this trend reflects a continuous hesitation of investors and a weakening of demand. If this continues, its price could revisit its hollow of $ 0.40 and fall on the new stockings.
On the other hand, a resurgence of demand could lead the price of the Pi token at $ 0.65.
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