Pi Network Price Faces Risk of Plummeting to $0.20 as Bullish Momentum Dwindles

Summary:
The Pi Network (PI) is experiencing a decline in price as the bullish trading volume diminishes, leading to pressures on key support levels. This development raises concerns of a potential drop towards the $0.20 mark.

Key Takeaways

Current Price Action: Pi Network price shows signs of weakening as bullish volume fades.
Support Levels: The critical support level is at $0.22; slipping below this could expose the cryptocurrency to further declines.
What Lies Ahead: A failure to regain bullish volume might lead to a test of the $0.20 support level.

Pi network weakness suggests lower prices to come next.

Analyzing Pi Network’s Price Position

Pi Network price risks crash to $0.20 as bullish volume fades - 1
PIUSDT (4H) Chart, Source: TradingView

The Pi Network has recently seen a retreat towards the point of control, which is positioned around $0.22—a pivotal level that supports the current trading range. Unlike previous interactions with this key level, where there was significant bullish volume leading to strong rebounds, the recent encounters have shown noticeably weaker demand. This indicates that buyers may be losing their grip on the market.

Although the price has created a series of higher lows around the $0.22 mark, this behavior does not necessarily denote increasing strength. Instead, it hints at an accumulation of liquidity beneath the support level. When liquidity pools gather below a crucial point, markets often tend to dip to collect these orders before any substantial reversal takes place. For Pi Network, this scenario increases the likelihood of a downward sweep below $0.22.

Should the market drop below this support level, the next significant technical support is at $0.20, aligning with the low end of the current trading range. This level serves as a strong demand zone and could be a natural target during a deeper corrective phase. A potential decline towards $0.20 might reset the current market structure and open the door for a rebound towards the point of control at $0.22 and potentially the upper range resistance at $0.25.

At this point, the point of control at $0.22 is the most critical support level. Maintaining this price point would help sustain the existing market structure. Additionally, Pi Network’s recent strategic investment in CiDi Games indicates further ecosystem development, but its impact on short-term price actions has yet to materialize.

Nevertheless, the combination of decreasing bullish momentum and increasing liquidity below the support level raises the chances of a sharper decline to $0.20 in the short term.

Future Price Predictions

If bullish trading volume does not return soon, Pi Network is likely to seek liquidity below $0.22 and challenge the $0.20 support level. A robust defense of the $0.20 mark may enable the price to re-establish itself within its range and attempt to climb back towards $0.25.