Key takeaways
PI is down 1% in the last 24 hours and is now trading below $0.21.
The coin could drop lower as the bearish sentiment grows stronger.
Pi core team transfers 2 million tokens
PI is down 1% in the last 24 hours despite the broader crypto market recovering from its recent slump. The negative performance comes after an outflow of 2 million PI tokens from the Pi core team’s liquidity reserve wallet.
Usually, such transfers are a strategic movement of supply for rewards of operations. This is usually followed by a bearish movement in the price action of the cryptocurrencies.
A similar transfer of 50 million PI tokens to a different wallet two months ago saw multiple deposits to the OKX cryptocurrency exchange. At the moment, this wallet holds less than 48 million tokens after transferring over 3 million PI tokens to OKX.
This movement could suggest that the core team is consolidating its holdings, increasing the bearish sentiment surrounding PI.
PI could retest the $0.19 support level
The PI/USD 4-hour chart is bearish and efficient as the coin has been in the red over the past seven days. The technical indicators are also bearish, suggesting that sellers are currently in control of the market.
The bearish performance comes after PI failed to defend the $0.2200 support level, with the bears likely to push it lower towards the $0.1919 support area.
Failure to defend this critical level could expose PI to the October 10 low at $0.1533, which could serve as its all-time low support.
The RSI of 37 is below the neutral 50, indicating that the bears are currently in control of the market. The MACD lines are also within the negative territory, suggesting a bearish momentum.
However, if the bulls recover the momentum, PI could rally and test the 50-day Exponential Moving Average at $0.2364. The bullish trend will resume once PI crosses the $2.500 psychological level.
