PI has dropped 17% in the past day, slipping under $1, even though the PI Foundation announced a $100 million startup fund. The newly introduced PI Network Ventures is designed to promote real-world adoption by investing in firms that incorporate PI into the AI and FinTech spheres.
While there’s excitement in the ecosystem about this move, technical indicators are raising some red flags. The momentum seems to be weakening, with various signals hinting that profit-taking might be leading to broader corrections that are already in progress.
PI Network launches a $100 million fund as momentum shows signs of slowing down
Following the initial hype, the PI Foundation rolled out PI Network Ventures, a startup fund aimed at accelerating the adoption of PI tokens.
Funded by 10% of the PI supply, this initiative plans to make early investments in Series B companies that integrate PI into fields like AI, FinTech, e-commerce, and consumer applications.
Most of the investments will be made in PI tokens instead of fiat currency, aligning with the project’s long-term goals. After a period of decline, PI saw a recent surge, gaining 85% over the last two weeks.
Despite this increase in price, technical metrics indicate that the current rally may be losing steam. The DMI chart shows the ADX has plummeted from 72 to 35.46 in just two days, signaling a significant loss of trend strength.
Generally, ADX values over 25 indicate a strong trend, while values under 20 can suggest fatigue. Meanwhile, the +DI (bullish pressure) has dropped from 61 to 23.99, while -DI (bearish pressure) has increased from 1.2 to 25.
This crossover indicates that bearish momentum may be taking control, suggesting that PI might experience integration or correction phases unless buying pressure returns.
Potential profits suggested by Chaikin Money Flow Drop
The Chaikin Money Flow (CMF) for the PI network experienced a sharp decline, falling from 0.24 to -0.05 within just two days. This change implies that buying pressure may be dwindling quickly, with distribution potentially beginning to dominate.
The CMF is a volume-weighted measure that assesses the inflow and outflow of money in assets. Positive values indicate accumulation (buying pressure), while negative values suggest distribution (selling pressure).
Although a reading of -0.05 isn’t drastically negative, the substantial drop from a strong positive position could signify weakening investor confidence, especially following the excitement surrounding the $100 million PI Network Venture Fund announcement.
If the CMF continues to decline, this may point to a short-term price correction, as traders take profits after recent gains.
When the EMA signal is bearish, the PI is below $1
The price of PI has fallen 17% in the last 24 hours, dipping below the $1 mark and erasing much of its recent gains.
This price action aligns with technical signs as the EMA line tightens, suggesting a possible bearish crossover may be forming.
If this trend persists, PI may test the support level of $0.90, and if it breaks below that, it could face levels as low as $0.78 or $0.636.
However, a reversal isn’t completely off the table. If bulls regain momentum, PI could aim to retest the resistance level of $1.23, with further upward movement potentially reaching $1.67 and $1.798.
