Pi Network Price Forecast: PI retreats as bearish sentiment loom
- The Pi Network's price edges lower by nearly 2% at press time on Monday.
- Pi Network prepares for 136 million tokens to be unlocked in October.
- The technical outlook holds a bearish bias as ̌social interest declines in the broader cryptocurrency market.
Pi Network (PI) edges lower by nearly 2% at the time of writing on Monday, marking a slow start to the week as the broader crypto market social interest declines.
PI token unlock amid muted market adds to sell-off risk
PiScan data reveals that 136 million PI tokens will be unlocked in October, which accounts for slightly over 1% of the circulating supply. This increase in supply could add to the selling pressure as the risk-off sentiment prevails.
PI token unlock statistics. Source: PiScan
Validating lowered interests, Joao Wedson, CEO of on-chain analytics platform Alphractal, shared a decline in the search volume of crypto-related keywords in Google Trends, which suggests that the retail investors are sitting on the sidelines.
Pi Network could retrace downward in a declining wedge
Pi Network reverses from the Pivot Point indicator level at $0.2696 on Monday, setting up a potential downcycle in a declining wedge pattern formed on the 4-hour chart. This downtrend could test Thursday's low at $0.2565.
If bears sweep below this level, PI could nosedive to the $0.2000 round figure.
However, the technical indicators on the same chart show that selling pressure is gradually decreasing, as the Relative Strength Index (RSI) remains above the oversold zone at 42. Additionally, the Moving Average Convergence Divergence (MACD) and its signal line hold a steady upward trend approaching the zero line, which indicates a decline in bearish momentum.
PI/USDT daily price chart.
Looking up, key resistance levels for PI are at the 50-period Exponential Moving Average (EMA) at $0.2845, followed by the $0.3000 round figure.
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.
