- Pi fell 20.37% in 24 hours, threatening to erase its entire monthly gains.
- If the $0.3112 zone fails, PI could fall to $0.30 or lower as bearish conditions intensify.
Pi Network [PI] has ended up as the top market loser over the past 24 hours, after dropping 20.37%. This sharp drop now threatens to erase its entire monthly gains, dragging performance down to just 14% for May.
PI loses key market support — Where next?
The daily chart analysis of PI using the Bollinger Band indicator showed that it has dropped below its middle band, which traders expected to serve as a support level.
This implies that selling pressure has continued to mount, and the asset is likely heading for the lower band.
Source: TradingView
This lower band at $0.3112 is expected to act as a support for the price, potentially causing a rebound or a major rally.
Reaching that level implies a further 56% slide from recent highs. Naturally, traders now eye this zone as a potential bounce or breakdown point.
What’s the tendency for the fall?
The Accumulation/Distribution (A/D) indicator shows that PI is being aggressively distributed without matching demand. Sellers appear to be exiting positions with no buy-side interest.
In fact, the indicator revealed that at the current rate of distribution, the asset is likely to cross below its all-time low.
Source: TradingView
The Average Directional Index (ADX) shows that selling pressure is currently high.
Typically, when the ADX trends higher and the market moves decisively in one direction—upward or downward—it confirms the prevailing market trend.
If it continues to trend higher, then it confirms that PI has a strong tendency to move toward the lower target on the chart.
Having said that, unless buying pressure returns quickly, PI may revisit its all-time low.
Traders are closing their positions
On top of the weak spot setup, futures sentiment also paints a grim picture. The Open Interest on PI Futures has continued to decline.
A closure in contracts, alongside a price decline, implies that there are more selling activities among Futures traders in the market.
Source: CoinGlass
At the time of writing, the latest data showed that OI fell to $4,000, confirming there are more sellers in the market.
With several selling indicators aligning across the board, PI has a high potential to decline further to $0.30.