Measurements from the PI/USD Daily Chart show that AltCoin was temporarily integrated between July 1st and 4th with resistance of $0.50 and support of $0.47.
However, the bearish power gained strength on Friday, pushing the token under short-lived support. Since then, PI has gone downwards, increasing its chances of a record low retest to $0.40.
The sale of PIs becomes deeper as bullish momentum weakens
The PI accumulation/distribution (A/D) line has jumped over the past two weeks, showing a significant drop in purchase volume and a decline in investor confidence. At the time of writing, the metric was -373 million, a decline of 82% since June 25th.
The A/D line measures the buying and selling pressure of assets by analyzing price movements and trading volumes. Upon climbing, it shows a strong accumulation. That is, buyers are driving demand and increasing prices.
Meanwhile, as seen in PI, falling A/D lines suggests that sales pressure exceeds buy interest. This shows that the trainer is offloading the Pi rather than accumulating it. This is a sign that weakens confidence in the token’s short-term recovery prospects.
Furthermore, the PI’s Directional Motion Index (DMI) setup is consistent with this bearish story. The token’s positive directional indicator (+DI, blue) is currently under the negative directional index (-DI, orange), indicating an enhanced negative trend.
The DMI indicator measures the strength of an asset’s price trends. It consists of two lines: +DI, which represents the upward price movement, and -DI, ​​which represents the downward price movement.
If +di is above -di, market trends are bullish. This means buy-side pressure is dominated and assets are on the upward trend.
Conversely, if +di is under -di, the downward price movement is strong. This is a bearish sign, indicating that PI sellers have more control over the market than buyers.
Sellers dominate the PI market, but buyers can flip the script
At press time, the PI trades for $0.44, with the next major support level being an all-time low of $0.40. It is possible for sellers to stay firmly in controlling and building bearish momentum and revisiting this low price.
However, a revival of buyer demand could negate this bearish outlook. In that scenario, the price of the PI coin could rebound, surpassing the new resistance at $0.47, reaching $0.50.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
