$0.500 Support Threatened As Bears Strengthen Hold
Pi Network coin price’s bearish momentum continued on Wednesday, with the price down by 3.7% to trade at $0.528 at press time. A fourth successive daily loss underscore the coin’s weak fundamentals, and a break below the psychological $0.500 could potentially accelerate its downside. Pi coin has declined by more than 17% in the last week, and the 50 MA is on its third week below the 200 MA on the 4-hour chart.
However, the RSI on the daily chart is at 30, indicating oversold conditions. That could provide support for Pi Network Coin price and help delay a break below $0.500. That said, the ongoing token unlocking continues to exert downward pressure on the coin. The volume of Pi circulating in exchanges rose by more than 30% in the first quarter of the year, diluting the marginal price gains made. With more than 300 million coins yet to enter into circulation via token unlocks this year, it could get worse before it gets better.
The increasing supply of Pi makes it difficult for the current oversold signals to trigger a reversal. Also, the coin’s daily trading volume has declined substantially from nearly $3 billion per day in February to just about $100 million currently. That signals reduced investor interest, which raises the prospect of an extended downside.
Pi Network Coin Price Prediction
Pi Network coin price pivots at $0.550 and the momentum calls for further downside. The coin will likely find initial support at $0.520. However, an extended control by the sellers will break below that level and could send the price lower to test $0.500.
On the other hand, action above $0.550 will signal control by the buyers. That could see the first hurdle encountered at $0.564. The downside narrative will be invalid if the price breaches that barrier. In addition, an extended control by the buyers could take Pi coin price higher and test $0.582.
