Pi Network Price Forecast: PI under pressure as outflows rise, support level in focus
|- Pi Network holds above $0.1600 on Wednesday, following a 2% boost on Monday.
- PiScan data indicates consistent outflows from the Pi core team and increasing deposits on exchanges that support the PI token.
- The technical outlook for Pi Network remains mixed, keeping the crucial support in focus.
Pi Network (PI) trades above $0.1600 at press time on Wednesday, struggling to extend the 2% gains from Monday. A steady increase in deposits at exchanges supporting PI tokens and the trimming of Pi Foundation holdings add to downside pressure. The technical outlook remains mixed, with PI holding above a crucial support level and the RSI indicator still oversold.
Large deposits signal increased bearish pressure
PiScan data indicate a sharp decline in confidence among both holders and the core team amid substantial PI token outflows. On the retail side, Centralized Exchanges (CEXs) recorded a net flow of 1.76 million PI tokens over the last 24 hours, indicating a broader risk-off sentiment among mainnet users.
Meanwhile, the Pi core team wallets recorded an outflow of 8.41 million PI tokens during the same period, further intensifying supply pressure. A steady increase in deposits and outflows after Monday’s recovery suggests a likely race to take profits among holders.
Pi Network struggles to extend recovery
Pi Network held above the December 18 low at $0.1533, avoiding a bearish close. An easing of selling pressure earlier this week led to a more than 2% rise on Monday, pushing PI above $0.1600.
However, the short-term recovery is struggling to gain momentum, risking a reversal to $0.1533. If PI slips a daily close below this level, it would open the door to the S1 Pivot Point at $0.1327.
The technical indicators on the daily chart flash mixed signals. The Relative Strength Index (RSI) at 39 remains oversold, suggesting heightened bearish pressure. However, the Moving Average Convergence Divergence (MACD) is approaching the signal line, suggesting a potential crossover that could signal renewed bullish momentum.
On the upside, a recovery run in PI could target the 50-day Exponential Moving Average (EMA) at $0.1920, close to the October 11 low at $0.1919, which is a support-turned-resistance level.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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.