Pi Network Drops 32% In One Week: Will the Sell-off Continue?

Pi Network has continuously plummeted since the beginning of March. In just one week, increased selling pressure has caused this token to evaporate 32% of its value. The outlook remains bleak as selling forces continue to dominate the market, increasing the risk of deeper declines in the near future. The Cattle Faction Struggles as Trading Activities Plummet Currently, PI is trading at $1.17, up 1% in the past 24 hours. However, this recovery momentum seems unsustainable, as trading volume is on the decline, reflecting a lack of strong demand from investors. The increase in PI may just be a response to the overall market trend over the past day. The total trading volume of PI during the monitoring period reached 366 million USD, falling by 37%. When prices rise but liquidity decreases, it indicates that the recovery phase is not receiving active participation from buyers, making the upward trend fragile and difficult to sustain.

In addition, the fall in trading volume also indicates that the market's interest in PI is gradually weakening. If the cash flow does not return soon, this token may face difficulties in maintaining its current upward momentum and confront the risk of further adjustments. BBTrend Indicator Shows Strong Downtrend Further reinforcing the negative outlook, the BBTrend indicator of PI remains in the red zone, confirming that the bears are in control of the market. On the 4-hour frame, this momentum indicator is currently at -32.45 – the lowest level since the launch of PI.

BBTrend measures the strength and direction of price based on its relationship with the Bollinger band. When this indicator has a positive value, the upward trend dominates, reflecting that the price is approaching the upper band with strong momentum. Conversely, the negative value of BBTrend – as is the case with PI – indicates that the downtrend is in control, with the price trading near the lower band and selling pressure prevailing. The fact that BBTrend has plummeted into negative territory like it is now signals a strong and prolonged downtrend, in which selling pressure completely dominates. This not only indicates a short-term correction but also implies the continuation of a long-term downtrend with significant fluctuations. PI Strives to Maintain Important Support PI is currently sustaining above the critical support at $1.11. If selling pressure continues to build, the bulls may not be able to defend this support level, causing the token price to plunge to $0.87.

Conversely, if market sentiment changes positively and demand for PI recovers, the bearish scenario will be invalidated. At that point, the token price may reverse and continue to rise to $1.34.