Pi Network's cryptocurrency has lost more than half its market capitalization since late February, with mounting technical evidence suggesting further declines may be imminent. The digital asset reached a record market cap of $19.2 billion on February 26 but has since plummeted to $9.2 billion as selling pressure intensifies across multiple indicators.
Technical analysis shows PI has corrected by 22% over the past two weeks and shed another 8% in the last 24 hours alone. The sharp sell-off following the KYC deadline has fueled negative market sentiment, creating a challenging environment for price recovery.
The cryptocurrency's Directional Movement Index (DMI) reveals sellers firmly in control of current price action. PI's Average Directional Index (ADX) sits at 18.3, a level maintained since yesterday, indicating a weak but persistent downtrend as the reading remains below the key 25 threshold that would signal stronger directional movement. The ADX measures trend strength, with values above 25 indicating a strong trend and readings below 20 suggesting a weak or range-bound market.
More concerning for investors is the widening gap between PI's directional indicators. The positive directional indicator (+DI) has dropped to 16.1 from 23 just two days ago, while the negative directional indicator (-DI) has climbed to 26.2 from 19.6 yesterday. This divergence reinforces the existing downtrend and suggests continued bearish pressure unless the +DI begins recovering and the ADX rises above 20.
PI's Chaikin Money Flow (CMF) provides additional evidence of market weakness, currently sitting at -0.14 after remaining in negative territory for the past two days. This marks a significant reversal from its recent peak of 0.15 just four days ago, placing the indicator at its lowest level in the past week.
The CMF combines price and volume data to measure the flow of money into and out of an asset. Readings above zero indicate accumulation or buying pressure, while negative values suggest distribution or selling pressure is dominant. The current -0.14 reading signals that sellers have gained decisive control, adding weight to the ongoing downtrend and pointing to continued weakness unless buying volume increases substantially in the short term.
Recent criticism surrounding Pi Network's launch of .pi domains has exacerbated the negative sentiment that began with a major sell-off following its mainnet migration. If the current corrective trend continues, PI could soon test the critical support level at $1.23, with a break below potentially pushing the price under $1.20 for the first time since February 22.
Market analysts note that despite the bearish outlook, recovery scenarios remain possible. If PI price regains positive momentum, it could challenge the resistance at $1.57, with a breakout above this level potentially opening the way for further gains toward $1.82 and $1.98. A significant trend reversal would be signaled if bullish momentum accelerates sufficiently to break above $2 for the first time since March 1.
The cryptocurrency's technical picture presents a challenging outlook for investors as PI approaches key support levels that could determine its near-term trajectory. With sellers currently dominating market dynamics, attention focuses on whether PI can maintain support above the psychologically important $1 threshold in coming trading sessions.