By Pi Network (PI) has been underperforming in recent days and could be set to dip lower in the near term.
At press time, PI is trading below $0.1600 after losing less than 1% of its value in the last 24 hours. An increase in deposits on exchanges supporting PI and reducing the Pi Foundation holdings has added selling pressure to the coin.
The technical indicators suggest that PI may not be out of the woods yet, with further downward pressure expected in the near term.
Deposits on exchanges add selling pressure to PI
PI has lost less than 1% of its value and has dropped below $0.1600 after underperforming over the past few days.
Data obtained from PiScan shows a sharp decline in confidence among both holders and the core team, thanks to the massive PI token outflows.
Centralized exchanges recorded a net flow of 1.76 million PI tokens over the last 24 hours, suggesting that retail investors are reducing their exposure to the market.
Furthermore, the Pi core team wallets recorded an outflow of 8.41 million PI tokens during the same period, adding more selling pressure to the cryptocurrency.
An increase in deposits and outflows after Monday’s recovery indicates that traders are taking profits.
PI is acting according to the performance recorded by other leading altcoins, including XRP, ETH, SOL, and BNB.
Broad altcoin indexes continue to lag Bitcoin, with total market cap measures struggling to reclaim former support levels.
Technically, this reflects caution rather than capitulation, as many altcoins remain range-bound with declining volatility. In this phase, beta exposure tends to underperform selectivity.
PI could retest the previous support level
The PI/USDT 4-hour chart is bearish, similar to other leading cryptocurrencies. PI is still trading above the December 18 low at $0.1533, with the bulls looking to avoid a bearish candle close on the daily chart.
The ease in selling pressure on Monday resulted in PI adding 2% to its value. However, it has failed to move above the $0.1600 psychological level.
The short-term recovery is struggling to gain momentum, with the bears likely to push PI’s price below the $0.1533 support level.
The daily candle closing below this level could see PI retest the weekend low of $0.1450, with the major support level just above $0.1320.
The technical indicators on the 4-hour chart remain bearish. The Relative Strength Index (RSI) at 46 remains oversold, suggesting a weakening bullish pressure.
The Moving Average Convergence Divergence (MACD) has also failed to overcome the neutral line, suggesting a growing bearish trend.
If the bulls regain control, PI could rally towards the 50-day Exponential Moving Average (EMA) at $0.1920. However, the resistance level at $0.1780 could provide a stiff challenge to the bulls in the near term.
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