The price of Pi Network (PI) saw a slight drop on Monday, raising concerns about a significant correction that could push it below its all-time low of $0.1184 recorded on June 6. As the excitement from Pi2Day fades, negative funding rates emphasize a selling advantage. Technically, PI continues its downward trend, with increasing momentum despite warnings of being oversold.
Amid Pi2Day excitement, sellers gain control
The Pi Network community marked Double Pi Day on Sunday (June 28), introducing new functionalities like local AI agent SoloHost, which allows users to sign in to third-party platforms. Additionally, PiVerify utilizes Pi KYC for user verification in businesses.
Yet, even with these new features, investor sentiment leans bearish. CoinAnk’s data shows a funding rate of -1.6168%, indicating traders are opting to maintain short positions, anticipating further declines in the PI token’s value.
Could PI have avoided further declines?
As of Monday, Pi Network is trading below $0.1250, continuing to decline towards the previously broken downtrend line near the June 6 low of $0.1184. The 50-day exponential moving average (EMA) and the 200-day EMA are well above the current price, at $0.1406 and $0.1882 respectively. This suggests a dominant downside trend, with PI maintaining a bearish outlook for the short term.
Moreover, the momentum reinforces this negative sentiment, with the Moving Average Convergence Divergence (MACD) just below the signal line. The Relative Strength Index (RSI) sits around 33, indicating persistent selling pressure but not yet signaling severe overselling.
A dip below the previous downtrend line near the June 6 low of $0.1184 would establish a new all-time low for PI, possibly targeting the psychological threshold of $0.1000.
On the upside, the primary resistance level crops up at the 50-day EMA of $0.1406, marking the limit for any significant recovery attempt. Meanwhile, the 200-day EMA of $0.1882 remains a more distant obstacle, reinforcing the overall downtrend.
