PI Price Crashes 42% Due To Skepticism Around Mainnet Launch

The price of PI Network has taken a significant hit, dropping 42% over the past 24 hours. This decline comes amid growing skepticism surrounding the altcoin’s upcoming mainnet launch on February 20.

Investors are increasingly concerned, especially with the rumors of Pi Network being labeled a pyramid scheme, which has made it difficult for the token to gain traction. As the launch date approaches, the skepticism has only intensified, and many investors are unsure about the viability of the project.

Bearish Momentum Builds Around Pi

The Relative Strength Index (RSI) for Pi Network recently breached into the overbought zone, only to experience a sharp downtick in the past 24 hours. Historically, tokens that enter this zone often face a reversal, as seen with PI IOU (I owe you).

While the RSI still holds above the neutral line at 50.0, the overall bearish momentum appears to be building. As the price continues to experience fluctuations, the RSI’s movement suggests that the negative sentiment surrounding the token could lead to further declines.

In addition to the RSI’s movement, investors’ confidence remains low. The sharp drop in PI’s price highlights the market’s hesitation, and many are waiting for clearer signs before making any major moves.

With the skepticism surrounding the mainnet launch, the altcoin is facing increased selling pressure. This lack of confidence in the market is contributing to the overall decline in price and further stoking fears of a prolonged downturn.

The Chaikin Money Flow (CMF) indicator, which measures the amount of money flowing into or out of an asset, has been on a decline since the start of the month. Despite some occasional upticks, the CMF has failed to secure the zero line as support.

This trend indicates that outflows are currently dominating inflows, signaling a lack of confidence among investors. Such a situation is often detrimental to a token’s price performance, as it indicates a lack of buy-side interest.

With the CMF’s ongoing decline and the market sentiment showing signs of weakness, Pi Network’s price could continue to struggle in the short term. The overwhelming selling pressure coupled with investor skepticism is limiting the ability of Pi Network to rally.

For any sustained upward momentum, the market needs stronger support and reassurance from investors, which currently seems to be lacking.

PI Price Prediction: Losses Ahead

PI price currently stands at $72, having dropped 42% in just 24 hours. This sharp decline occurred after the altcoin failed to breach and secure $130 as a support floor.

With concerns growing around the upcoming mainnet launch, the price is expected to face further downward pressure. The current price level may not be able to hold, and the bearish sentiment could extend PI’s losses.

Although PI is holding above the support of $63, it remains susceptible to further declines. Losing this support could bring the price down to $47, which would result in significant losses for investors who have held onto the coin in recent weeks. The altcoin’s potential to recover hinges on maintaining this key support level.

On the other hand, if PI manages to bounce back from the $63 support, it could attempt another breach of the $130 resistance level. Successfully flipping $130 into support would invalidate the bearish outlook and set the stage for a more substantial recovery. However, the market remains uncertain, and without a change in investor sentiment, this outcome remains unlikely.