Pi Network Price Analysis: Bearish trend deepens as core team shifts 2M tokens
|- Pi Network trades at $0.20, recording a 3% loss so far on Thursday.
- The Pi core team moved 2 million PI tokens from its liquidity reserve, which could add to the supply pressure.
- The technical outlook for PI remains bearish amid increasing selling pressure.
Pi Network (PI) edges lower by 3% at press time on Thursday, marking its fifth consecutive day of losses. A transfer of 2 million PI tokens from the liquidity reserve, part of the Pi core team wallets, bolsters the bearish sentiment. The technical outlook for PI targets the October 11 low at $0.1919 as the immediate support level.
Pi core team shifts 2 million tokens amid broader market sell-off
PiScan data shows an outflow of 2 million PI tokens from the Pi core team's liquidity reserve wallet. Typically, such transfers are a strategic distribution of supply for rewards or operations.
However, a similar transfer of 50 million Pi tokens to a different wallet two months ago saw multiple deposits to the OKX exchange, potentially linked to selling. As of Thursday, the wallet holds less than 48 million tokens after depositing over 3 million tokens to OKX.
With the core team likely consolidating its holdings, bearish sentiment surrounding Pi Network intensifies.
Technical Outlook: Pi Network’s decline eyes its record low as final support
Pi Network is down over 6% this week so far, extending the 7% loss from the previous one. The mobile mining cryptocurrency flashed a sell signal on Tuesday, crossing below the Supertrend indicator line near $0.2200.
Pi Network’s declining trend inches toward the October 11 low at $0.1919 as the immediate support. Below this, the October 10 low at $0.1533 would serve as the PI token's all-time low support.
On the same lines, the momentum indicators on the daily chart suggest a bearish bias. The Relative Strength Index (RSI) at 35 maintains a downward slope, approaching the oversold zone, indicating a steady rise in selling pressure.
At the same time, the Moving Average Convergence Divergence (MACD) crosses below the zero line with its signal line while the red histogram bars successively rise into the negative direction. This indicates that the bearish momentum is increasing.
Looking up, a potential bounce back from $0.1919 could push PI to test the 50-day Exponential Moving Average at $0.2364. To reinforce a bullish trend, PI should cross above the Supertrend indicator line at $0.2500.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.