Pi Network's native token continued to show poor performance for another day, declining by 7% over the past 24 hours.
This decline pushed the asset closer to the bottom trend line of a narrow trading range traded since July 15, bringing the all-time low back into view. With new demand still significantly lacking, it is now a matter of when, not if, a collapse will occur.
Will PI Fall or Rebound?
The PI token price has been unable to break out of the range between the support line of $0.43 and the resistance line of $0.46 since July 15. Several attempts to break the upper boundary have failed due to weak demand, forcing the token back into consolidation.
The daily trading volume in the spot market remains low, indicating decreasing market participation and almost no desire for a bullish reversal. Over the past day, the volume has decreased by 14%, totaling $105 million at the time of reporting.
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When an asset's price and volume decline simultaneously, it confirms weakening market interest and the disappearance of buyer and seller momentum. This suggests a lack of confidence among PI traders, and if trading volume does not recover, price performance could deteriorate.
Moreover, momentum indicators continue to show a significant reduction in buying pressure. For example, PI's Balance of Power (BoP) currently returns a negative value of -0.64, emphasizing selling pressure in the market.
The BoP indicator measures the strength of buyers and sellers in the market. When the value is positive, buyers dominate the market and drive new price increases.
Conversely, when BoP is negative, sellers dominate the market with little buying resistance. PI's BoP reinforces a bearish outlook for altcoins, suggesting that selling activity may continue if new demand does not enter the market.
PI: Breaking Below $0.40 or Breaking Above $0.50
If selling continues, it is likely to slip below the $0.43 support line. In this case, PI risks a sharp drop to its all-time low of $0.40. If distribution continues, PI could record a new price low.
On the other hand, a positive catalyst could break through the $0.46 resistance line. In this case, the PI token price could rise to $0.50.
