Pi Network Sell-Off Continues as PI Hits 7-Day Low

The original Token of Pi Network, PI, has seen a 22% price drop in the past week, extending the downward trend to trade at a seven-day low of $0.61 at the time of writing.

This double-digit decline reflects increasingly negative sentiment around the token and coincides with a broader contraction in the cryptocurrency market.

PI's Prospects Worsen as Deeper Price Decline Trend Continues

The global cryptocurrency market capitalization has dropped over 5% in the past seven days, losing more than $170 billion. This widespread retreat has shaken investor confidence, triggering new PI sell-offs in recent days.

Selling pressure is clearly increasing in PI's BBTrend indicator, as it continues to print red chart bars, a clear signal of growing downward momentum. At this point, the indicator is at -4.52.

BBTrend measures the strength and direction of a trend based on Bollinger Bands' expansion and contraction. When the BBTrend value is positive, it usually signals a strong upward trend, while a negative value indicates growing downward momentum.

PI's continuous negative BBTrend suggests its price consistently closes near the lower Bollinger Band. This trend indicates continuous selling activity and suggests the possibility of prolonged price decline.

Moreover, PI's Smart Money Index (SMI) has decreased in recent days, signaling the withdrawal of "smart money" or institutional investors. This is often considered a leading indicator of deeper price drops, as it shows a decline in confidence from these important investors.

An asset's SMI tracks institutional investor activity by analyzing market behavior during the first and last trading hours. When it increases, these investors are increasing their buying activity, indicating the possibility of a prolonged surge.

Conversely, as with PI, when it decreases, it shows institutional investors' demand for the asset is weakening, signaling the potential for further price decline.

PI Wobbles Near Critical Support—Will Buyers Hold Firm at $0.55?

PI's increased selling activity suggests the token could be vulnerable to additional short-term losses. If sell-offs continue, this altcoin risks breaking the critical support level formed at $0.55.

If the bulls fail to defend this support level, PI could return to its All-Time-Low of $0.40.

However, a new surge in demand for the token could prevent this from happening. If Pi Network token buying pressure spikes, it could push its price up to $0.86.