Pi Network Price Forecast: Mixed signals weigh on PI token's recovery
- 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.
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.
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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.
