Tackling Pi Network's Price Dip: An In-depth Analysis
Pi Network Tumbles Following Brief Surge – Where Does PI Head Next?
The cryptocurrency world is buzzing about Pi Network (PI), as it's taken a tumble of more than 8.5% in the past week. For six days straight, the coin has dipped below $0.65, with today's crash heading towards $0.60.
Pi Network's Ongoing Downtrend
Despite the concerning drop, the trend for Pi Network remains weak, as prices struggle to break above the Ichimoku Cloud. The Relative Strength Index (RSI), a momentum oscillator, originally found a breath of fresh air when it briefly went above 50, but now it's taken a dive, hanging around 45.
EMAs (Exponential Moving Averages) aren't on Pi's side, either. The indicators persistently reveal a bearish market structure, with the coin barely keeping above key support levels. The next move could potentially signal a deeper decline or a possible rebound.
Beneath the Ichimoku Cloud: A Bearish Market for Pi Network
Pi Network's battle is continuing under the Ichimoku Cloud, which generally signals a bearish market structure. However, a shift might be on the horizon, considering the Tenkan-sen (conversion line) recently crossed above the Kijun-sen (base line)—a seemingly bullish sign.
Though promising, this crossover means little without confirmation from increasing volume or a move into the cloud. To top it all off, the future cloud remains red, indicating ongoing resistance ahead.
The Chikou Span, or lagging line, is still below both the price candles and the cloud. In short, any upside move in Pi Network hasn't been confirmed yet.
To break the cycle and notice a genuine trend reversal, Pi Network must break into the cloud and have the future cloud turn green, with all Ichimoku signals aligned bullishly. The current setup is indecisive, with a short-term bullish cross but prices still under the cloud and the broader trend remaining bearish.
Pi Network's Struggling Momentum: RSI Drops Below 50
Pi Network's RSI is currently at 45.41, having had a rapid surge from 28.49 to 54.40 just two days ago. The sharp reversal suggests a slowdown in momentum after a brief recovery phase.
The quick dip below 50 marks Pi Network as entering a more neutral zone, where neither bulls nor bears hold significant control. The sudden reversal also raises uncertainty about the current price trend.
The RSI is a momentum oscillator ranging from 0 to 100, used to identify overbought or oversold conditions. A value above 70 typically suggests an asset is overbought and due for a correction, while a reading below 30 reflects oversold conditions that might lead to a rebound. Values between 30 and 70 are considered neutral, with 50 as the key pivot point.
Pi Network's current RSI at 45.41 is slightly bearish but not enough to tip the scale significantly. If the RSI keeps falling, it might indicate growing selling pressure and potential for deeper price weakness.
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The RSI can help traders anticipate potential reversals and make informed decisions. Keep a close eye on the RSI trends and other price action indicators to make the most of your trading opportunities.
[1] CoinMarketCap. (2023, February 17). Pi Network. [Online]. Available from:https://coinmarketcap.com/currencies/pi-network/
[2] Coingape. (2023, February 15). Pi Network Technical Analysis: Why PI might drop below $0.5 soon. [Online]. Available from:https://coingape.com/pi-price-prediction-pi-network-technical-analysis-pi-might-drop-below-0-5-soon/
[3] Crypto News Z. (2022, December 28). Pi Network Price Prediction 2022-2030: Will PI Hit $3, $5, or $10? [Online]. Available from:https://cryptonews-z.com/pi-network-price-prediction/
[4] TradingView. (n.d.). Pi Network (PI) fork chart. [Online]. Available from: https://www.tradingview.com/symbols/PIUSD/
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
- The ongoing downtrend of Pi Network (PI) has caused concern, as the coin has dropped more than 8.5% in the past week, with today's crash nearing $0.60.
- Under the Ichodmoku Cloud, Pi Network remains in a bearish market structure, though a shift may be imminent as the Tenkan-sen recently crossed above the Kijun-sen.
- The Chikou Span remains below both the price candles and the cloud, suggesting any upside move in Pi Network hasn't been confirmed yet.
- The RSI currently stands at 45.41, having dropped rapidly after a brief recovery, marking Pi Network as entering a more neutral zone and raising uncertainty about the current price trend.
- For traders looking to capitalize on the Pi Network market, platforms like Plus500, eToro, YouHodler, Wirex, NEXO, and MEXC offer diverse trading options to help unlock your trading potential.
- Investors are encouraged to keep a close eye on the RSI trends and other price action indicators to make informed decisions and take advantage of trading opportunities.
- BeInCrypto reminds readers that this price analysis article should not be considered financial or investment advice, as market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any trading decisions.
