Pi Network (PI) faces significant downward pressure, making traders increasingly nervous. Although some speculate that the altcoin might stage a breakout, current market conditions point toward considerable challenges.
Right now, traders see the risks outweighing potential gains, preparing themselves for a likely price drop rather than anticipating a sudden rally. Market sentiment remains notably bearish as traders clearly prefer short positions.
Futures Market Indicates Bearish Sentiment
Pi Network traders have become cautious, as is evident from the deeply negative funding rate in future markets. A negative funding rate reveals that most traders hold short positions, expecting prices to fall further. The looming expiration of the grace period for KYC and Mainnet Migration is also intensifying their worries. Investors who fail to complete migration by today’s deadline (March 14) risk losing substantial portions of their balances, aside from Pi tokens mined within the last six months.
This uncertainty could significantly dampen Pi Network’s potential for quick recovery. Traders might capitalize on short-term gains by selling into brief rallies, further pressuring prices downward.
PI Network (PI) faces a decisive moment as it trades near critical support around the $1.58 mark. Over the past 24 hours, PI displayed volatility, peaking at $1.66 before declining to test support along a rising trendline.
Chart Indicators Reveal Market Sentiment
The hourly chart indicates PI is trading at $1.5899, down by approximately 0.40%. Bulls are defending the ascending support line established since March 10, as evidenced by the repeated bounces off this dynamic support.
The Exponential Moving Averages (EMAs) offer crucial insight. The 20 EMA at $1.6432 and the 50 EMA at $1.6342 remain above the current price, suggesting bearish short-term momentum. However, the 100 EMA at $1.6073 and the 200 EMA at $1.6190 also hover above, reinforcing bearish sentiment in the short run.
Related article: $1.50 Pi Coin Pumps 8% – Could Binance Listing Push It to $5?
Bullish Scenario:
For PI Network to reclaim bullish momentum, buyers must regain control and push the price above the critical EMAs, particularly the $1.6432 level. Successfully holding above this area would signal a renewed bullish intent, potentially pushing PI toward recent highs around $1.90.
Bearish Scenario:
Conversely, a decisive break below the $1.58 support could trigger a sharper decline, targeting the next support zone at $1.50 or even $1.3536. This scenario would amplify bearish pressure, encouraging further sell-offs.
Conclusion
PI Network is currently at a critical juncture. For the next 24 hours, traders should closely watch how the price interacts with the $1.58 support. A bounce from this level could renew bullish hopes, whereas a breakdown may pave the way for deeper corrections.
