Pi Network at Risk of Returning to All-Time Low as Q2 Ends

After a failed recovery attempt in early May, PI has continued to decline, moving in a descending parallel channel.

As buying momentum dries up, this token seems ready to test its second All-Time-Low this month.

PI Network May Dip Further

The PI/USD chart in one day shows this altcoin has been moving in a descending parallel channel since 05/22, dropping 40%.

A descending parallel channel is a bearish signal formed when an asset's price moves between two downward-sloping parallel trend lines. It shows lower highs and lower dips over time and signals continuous decline in buying pressure.

Moreover, technical indicators confirm weak sentiment around the token. For example, PI's Moving Average Convergence Divergence (MACD) continues to emit bearish signals, with the MACD line (green) remaining below the signal line (orange).

The MACD indicator measures the relationship between two moving averages of the asset's price to determine momentum change and trend reversal potential. When the MACD line is below the signal line, it indicates a bearish trend.

PI's prolonged bearish configuration on the MACD indicator suggests selling pressure continues to outweigh buying interest. This momentum imbalance suggests prices may continue to decline unless new market demand emerges to reverse the trend.

Furthermore, PI's Super Trend indicator continues to create dynamic resistance above the token's price, further enhancing this bearish prospect. At the time of writing, it is at $0.64.

This indicator helps traders determine market direction by placing a line above or below the price chart based on the asset's volatility.

When an asset's price trades below the Super Trend line, it signals a bearish trend, indicating the market is in a downward trend and selling pressure dominates.

Pi Slides into Danger Zone

At the time of writing, PI is trading at $0.49. With increasing selling pressure, this altcoin risks breaking below the lower line of the descending parallel channel. If this occurs, the decline will be more severe, and PI's price could return to its All-Time-Low of $0.40.

However, with Pi2Day scheduled for 06/28, token investors expect important announcements and ecosystem updates, which could create new interest and demand.

This could provide the necessary buying pressure to push the PI token out of the descending channel and drive its price to the $0.79 resistance level.