Pi Network (PI) is facing a continuous downward trend, with prices falling as investor sentiment weakens. The price increase in the broader market is fading, along with declining investor confidence, contributing to this decline.
As a result, Pi Network's price is struggling to regain momentum and risks falling below the critical level of $0.60.
Pi Network Investors Are Pessimistic
Relative Strength Index (RSI) for Pi Network has been stuck in the bearish zone below the neutral level since the end of May. The RSI continues to drop deeper into this zone, indicating an intensifying downward momentum.
When the RSI is in the bearish zone, it suggests a lack of buying pressure, further reinforcing the downward trend.
The continuous price decline reflected in the RSI is a clear sign that investor sentiment is leaning more towards selling than buying. This adds to the negativity surrounding Pi Network, signaling that this altcoin may continue to struggle in attracting market attention.
Pi Network RSI. Source: TradingViewPi Network's price decline is also affected by fluctuating investor sentiment. Investor confidence appears to be waning, oscillating between positive and negative prospects.
The lack of consistent confidence in the token can lead to higher selling levels as investors seek to limit losses in an uncertain context.
As investor confidence drops, many holders may choose to sell their PI, further intensifying the downward trend. This selling activity, driven by fear of additional losses, could exacerbate the challenges Pi Network is facing in regaining momentum.
Pi Network Weighted Sentiment. Source: SantimentPI Price Faces Decline
Currently, Pi Network is trading at $0.63, holding above the critical support level of $0.61. The altcoin is attempting to bounce back from this support level to partially recover recent losses.
If Pi Network can maintain this level and see increased buying interest, it may recover part of what it has lost in recent weeks.
However, with the ongoing decline, Pi Network is vulnerable to falling below $0.61. If the price drops below this support level, it could further decline to $0.57.
Such a price drop would extend losses for investors and reinforce the downward trend. Continued sliding below this level would signal further depreciation in the token's value.
Pi Network Price Analysis. Source: TradingViewOn the other hand, if Pi Network can bounce back from the $0.61 support level, the price could rise again to $0.71. This recovery would allow Pi Network to recoup some recent losses and nullify the bearish argument.
A successful recovery could signal a change in momentum, allowing for a potential move back to higher price levels.
