Pi Network Price Forecast: Bearish outlook persists as core team offloads 27 million tokens
- Pi Network extends the decline below $0.1700, amounting to a 4% drop so far this week.
- Pi Foundation offloads over 27 million PI tokens in 24 hours, adding to the supply pressure.
- The technical outlook for Pi Network remains bearish, targeting a critical support zone near the $0.1500 round figure.
Pi Network (PI) edges lower by 2% at press time on Thursday, extending its decline for the fourth consecutive week and targeting the $0.1500 mark. The prevailing selling pressure intensifies as the Pi Foundation offloads more than 27 million PI tokens in the last 24 hours, jeopardizing the chances of a rebound. The technical outlook for PI remains downside-biased amid rising bearish momentum.
Pi Foundation adds to selling pressure
Pi Network’s core team wallets hold over 71 billion PI tokens, out of which 27 million were removed in the last 24 hours, likely adding to the ongoing selling spree. The 27 million tokens were strategically withdrawn from a larger 50 million PI transfer to core team wallets, reducing confidence in the Pi Foundation. A steady outflow from Pi Foundation wallets threatens a steeper correction for PI.
Pi Network under pressure, gains bearish momentum
Pi Network trades below $0.1700 on Thursday, extending the broader decline so far this month by roughly 20%. PI remains in support-discovery mode as it approaches the zone between $0.1533 and $0.1502, defined by the October 10 and January 19 lows, respectively.
Technical indicators on the daily chart reaffirm the bearish bias in trend momentum. The Moving Average Convergence Divergence (MACD) trend remains below the signal line, with negative histogram bars persisting, suggesting steady bearish momentum. Consistent with downside bias, the Relative Strength Index (RSI) at 19 is consolidating deep in the oversold zone, suggesting intense selling pressure.
If PI reverses the downward trend abruptly, it would face headwinds at the support-turned-resistance level at $0.1919, marked by the October 11 low.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Vishal Dixit
FXStreet
Vishal Dixit holds a B.Sc. in Chemistry from Wilson College but found his true calling in the world of crypto.
