The token of PI Network plummeted to an all-time low on August 1st and then entered a correction phase. Currently, it is moving with almost no directional movement.
This sluggish price movement reflects the uncertain market state. Traders are waiting for a decisive move to set the next stage for PI.
PI Price Trapped Between Fear and Hope
Technical indicators observed on the PI/dollar daily chart confirm this stagnation. For example, PI's Relative Strength Index (RSI) has remained flat since the sideways trend began, confirming the relative balance between buying and selling pressures in the market.
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The RSI indicator measures overbought and oversold market conditions for an asset. It has values between 0 and 100. Values above 70 indicate an overbought asset and expected price decline, while values below 30 suggest an oversold asset that may rebound.
Such flattened price movement reflects the conflict between buyers and sellers. Neither side is decisively pushing the market up or down.
Moreover, PI's Average True Range (ATR) has shown a downward trend since August 2nd, confirming market uncertainty. At the time of writing, this indicator is 0.03.
The ATR indicator measures the degree of price movement over a given period. When showing a downward trend like this, volatility is decreasing. Price changes are becoming smaller and less frequent.
Like PI, this often occurs during a consolidation phase waiting for a breakout. This indicates an uncertain period where traders are not strongly committed in either direction.
Boxed PI Attempts Breakout... Which Direction?
PI buyers are hesitant, wary of further decline. This is especially true as the project continues to unlock new tokens. According to PiScan, 166.21 million PI tokens worth $59 million at current market prices are set to be unlocked in the next 30 days.
If the supply shock from PI token unlocking continues to impact market sentiment, it could fall below the all-time low of $0.32.
However, if new demand emerges, an upward breakout is possible. In this case, the price of PI could rise to $0.44.
