Pi Network Price Forecast: PI remains flat as crypto market cools
- Pi Network trades flat for the third consecutive day as risk-on sentiment declines in the cryptocurrency market.
- A scheduled network outage will temporarily disable signup and login features on Thursday.
- CEXs' reserves continue to decline, indicating that traders are acquiring PI at discounted levels.
Pi Network (PI) price trades above $0.2700 at the time of writing on Thursday, taking a sideways shift after Monday’s 19% drop. The mobile mining cryptocurrency holds on thin ice amid the broader cryptocurrency market downtrend and a scheduled network outage on Thursday.
Furthermore, the net outflows from Centralized Exchanges (CEXs) reserve indicate the bullish struggle to absorb incoming supply pressure.
Scheduled upgrade and declining CEXs' balances flash mixed signals
Pi Network announced in an X post on Thursday that a scheduled upgrade between 15:00 and 17:00 GMT will temporarily disable features. This upgrade comes as part of the Stellar protocol version 23 shift, which would enable smart contract functionalities on the Pi Network. As of Thursday, the Pi Network Testnet 1 has undergone a complete shift, with Testnet 2 under upgrade. Following this, the Pi Mainnet will initiate its upgrade.
Flashing bullish potential, CEXs wallet balances maintain a net outflow, indicating that traders continue to buy the dip. The PiScan data suggest that over 1.21 million PI tokens have been withdrawn from CEXs, continuing the net outflow trend of 1.94 million PI and 7.96 million PI tokens, as previously reported.
CEXs wallet balances. Source: PiScan
Pi Network stays weak as bearish momentum remains elevated
Pi Network edges lower by 3% at press time on Thursday, erasing the 2.89% gains from the previous day. The intraday pullback holds above the $0.2700 level as the risk-on sentiment in the broader cryptocurrency market decreases.
CoinMarketCap’s Fear and Greed Index remains steady in the neutral zone at 41, after a decline from 51 last week. If this index drops below 40, it will signal a risk-off sentiment in the broader market.
Fear and Greed Index. Source: CoinMarketCap
If PI extends the intraday pullback below $0.2700, it could result in a free fall to the S2 support level at $0.2387.
Flashing the bearish pressure, the Relative Strength Index (RSI) at 27 on the daily chart remains within oversold territory, suggesting that sellers are dominating the price trend. Additionally, the Moving Average Convergence Divergence (MACD) and its signal line take a nosedive in the negative territory, following the bearish crossover on Sunday. The steady rise in red histogram bars indicates that the bearish momentum is increasing.
PI/USDT daily price chart.
On the flip side, if PI rebounds upwards, it could challenge the 50-day Exponential Moving Average (EMA) at $0.3618.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
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.
