Pi Network Faces Strong Selling Pressure As Price Dips Below Key Resistance Levels

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Recently, the price of Pi Network (PI) has shown a weak outlook on technical indicators. The price has receded below significant resistance levels on longer time frames, signaling a cooling off of investor expectations. After a failed breakout attempt, the price has returned to its current trading range, indicating a renewed downward momentum. In this context, PI could potentially decline towards the lower band of the range, around the $0.20 level, in the upcoming period.

Technical Outlook Under Pressure

Pi Network’s price has fallen below critical resistance levels and the “value area high” in the higher time frames. This indicates that buyers have lost control over the upper band and that selling pressure remains strong. The recent failure of a breakout attempt, followed by a “bearish engulfing” pattern, shows that the market’s intention to move outside the range remains unmet. Additionally, the price trading below the 0.618 Fibonacci resistance level suggests a weakness at the point of control.

Returning to the range has brought the price closer to historically significant average trading volume points. However, responses from this area have been weak, lacking any meaningful upward momentum. The overall technical picture suggests that selling pressure is still dominant and future price movements may likely be downward.

Regulatory and Ecosystem Developments Fail to Impact Price

Meanwhile, Pi Network’s application for MiCA compliance is seen as a significant step towards achieving legal status in the European market. This application increases the project’s chances of being listed on regulated exchanges in Europe.

Additionally, Pi Network’s efforts to expand its ecosystem, particularly through deepening its partnership with CiDi Games in the Web3 gaming space, indicate its potential to increase real-world use cases. Despite these positive developments, they were not enough to overcome the short-term technical pressures, and the price remains under pressure.

If the price fails to maintain the point of control on a daily closing basis, the most likely scenario is that PI will head towards the “value area low” around $0.20 in the coming period. This level represents the lower band of the current trading range. Additionally, the accumulation of liquidity below $0.20 suggests that the price could rapidly wick (an abrupt drop and recovery) in that direction.

Of course, for this scenario to be invalidated, a strong resistance break and high buying volume are required. However, there currently appears to be no such catalyst in the market.