Lately, the value of Pi Coin has plunged by approximately 40%, causing concern among investors as this significant drop signifies a challenging phase for the digital currency. This abrupt fall is making it progressively harder for Pi Network to recoup its losses from March.
Even though Pi and Bitcoin have an inverse relationship, meaning they tend to move in opposite directions, this suggests that the chances for a recovery in the Pi Network are limited, potentially leading to even more decreases.
Pi Network Pulls Away From Bitcoin
The link between Pi Network and Bitcoin, which was once strong, has noticeably weakened. The relationship has shifted to a negative correlation of 0.16, suggesting that Pi is no longer closely tied to Bitcoin’s performance. This development could be worrisome given Bitcoin’s persistent strength, currently valued around $106,000 and poised to possibly set a new record high.
The fact that Pi Network is no longer following Bitcoin’s trends could indicate a challenging road ahead for the cryptocurrency. Typically, coins like Pi usually mimic Bitcoin’s movements, particularly during bullish phases. However, with Pi Network breaking free from this pattern, it has exposed itself to potential negative influences more easily.
In simpler terms, the technical analysis suggests a pessimistic view towards Pi Network. The Moving Average Convergence Divergence (MACD), which monitors shifts in trend and momentum, has just displayed a bearish crossover for the first time in over a month. This change indicates that the overall momentum of Pi Network is moving in a downward direction.
If Pi Network hasn’t taken advantage of Bitcoin’s upward trend, it might keep investor interest at a minimum. Furthermore, since markets often mirror larger patterns, Pi’s independent performance may find it hard to recover its momentum unless it receives outside assistance.
PI Price Picks A Different Direction
The price of Pi Network stands at $0.73 right now, following a 40% drop over the last week. This significant decrease presents a critical juncture for the altcoin, as it grapples with ongoing difficulties in bouncing back from its losses in March. Without a definite factor to spur growth, Pi Network might find it challenging to escape its current downward trend, increasing the likelihood of additional drops.
Based on the prevailing market atmosphere, it appears that Pi Network may fall below its current support of $0.71. If this level is breached, it could trigger additional declines, potentially taking the price down to around $0.61. This continued drop would make any potential recovery for Pi Network more challenging for investors.
As an analyst, I’m observing that if the wider market displays a bullish trend, there could be increased interest from investors in Pi Network. If this occurs, Pi Network might surpass its resistance at $0.78, aiming towards $0.87. Such a surge would bring Pi Network closer to the $1.00 mark, potentially overturning the current bearish outlook and offering optimism for investors.
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2025-05-20 11:12