Local support lies at $0.61, with risk of slide to $0.57.
Resistance at $0.71 must be reclaimed for recovery to start.
Market sentiment for Pi Network remains cautious amid low volume.
Pi Network, a cryptocurrency once hailed for its unique mobile mining model, is seeing growing pressure from a wave of negative technical signals and investor caution.
Pi has lost a crucial support level and now trades at $0.67, down from $0.71 just a day ago.
This recent breach suggests mounting downward pressure in the coming sessions, with sentiment among holders appearing to wane.
Pi’s price trajectory has shifted sharply in recent days, and several key indicators now show persistent bearish momentum.
These signals come at a time when broader altcoin markets are experiencing lower liquidity and declining investor risk appetite, amplifying the impact on mid-tier tokens such as Pi Network.
CMF points to sustained sell pressure
One of the most notable signals reinforcing the current outlook is the Chaikin Money Flow (CMF), which has slipped just below the zero line.
This movement indicates that the volume of sell orders is beginning to outpace buys.
While still close to neutral territory, the shift in CMF hints at a reversal in market confidence.
This subtle but significant change reflects broader investor behaviour.
Market participants appear increasingly cautious, with many choosing to secure gains or minimise risk in anticipation of further price drops.
The dominance of outflows over inflows is often seen as a leading indicator of continued sell-offs, and in Pi’s case, that risk is growing more pronounced.
The outflow trend may also suggest concerns around Pi Network’s longer-term adoption, particularly as newer utility-focused tokens and large-cap coins dominate market narratives.
Squeeze indicator signals breakout risk
Another notable technical signal is the squeeze momentum indicator, which shows Pi Network currently in a low-volatility “squeeze”.
This phase is marked by black dots on the chart, indicating compression in price movement, typically followed by a strong directional breakout.
In Pi’s case, the building momentum is bearish, suggesting that once volatility returns, the coin may face a sharp downward move.
The current squeeze follows a string of lower highs and the failure to hold above previous support zones.
Blue dots on the indicator, which signal the release phase, have yet to appear, meaning the potential move is still building.
Traders and short-term holders will be watching closely for any indication that a release is underway.
If confirmed, the resulting sell-off could be swift, with Pi potentially testing new lows.
Local support at $0.61, downside risk remains
With the price now at $0.67, immediate support sits at the $0.61 level.
This threshold could provide temporary stability, but a breakdown below it would likely open the door to further losses, possibly toward $0.57.
Such a drop would represent a near 15% decline from current levels and would deepen the token’s downtrend, reducing confidence among existing holders.
On the upside, reclaiming $0.71 would be Pi Network’s first step toward invalidating the bearish thesis.
A break above $0.78 would mark a higher high and potentially shift momentum, bringing bulls back into the market.
However, such a reversal remains uncertain given current indicators.
Pi Network’s long-term potential will depend on both the utility it can deliver and broader market conditions.
For now, however, price action and volume flows suggest that caution will continue to dominate.
