Key insights
- PI fell 1% in the past 24 hours and has slipped below $0.21.
- The cryptocurrency could see further downside as the market undergoes a correction.
PI trades at $0.2072 as market undergoes correction
PI, the native token of the Pi Network, lost 1% of its value over the past 24 hours and is currently trading at $0.2072 per coin.
This weak performance coincides with centralized exchanges (CEXs) receiving 1.90 million PI tokens in the last 24 hours, signaling a risk-off sentiment among holders.
Data from PiScan show that more than 1.90 million PI tokens were deposited to PI-listed centralized exchanges, increasing supply pressure on the token.
Large deposits to centralized exchanges are often interpreted as precursors to selling, as holders move tokens to platforms where they can be traded. Such inflows can amplify near-term selling pressure on PI.
PI could drop below $0.20 amid selling pressure
The PI/USD 4-hour chart looks bearish, as the token has failed to gain momentum in recent days. PI is trading below the 200-day EMA at $0.2092 after a reversal below the 50-day EMA at $0.2166.
The decline suggests renewed supply pressure from the higher EMAs. The Relative Strength Index (RSI) has fallen to the neutral 50 level, indicating rising selling pressure and the potential for further downside.
Additionally, the Moving Average Convergence Divergence (MACD) is approaching the bearish zone, suggesting that bullish momentum is waning. If the MACD crosses below its signal line, it would confirm renewed bearish momentum.
If the sell-off continues, PI could retest the October 11 and September 22 lows at $0.1996 and $0.1842 respectively in the coming hours or days.
Should PI decline further, those October 11 and September 22 lows—$0.1996 and $0.1842—would act as key support levels.
If bullish momentum returns, PI could target the 50-day EMA at $0.2166 first, and potentially aim for the December high of $0.2295 thereafter.