Last week, PI tokens attempted a bullish breakout, surpassing the downward parallel channels that had been limiting prices for weeks.
However, the meeting was short-lived. The Pi could not hold profits and quickly retreated, informing us of what appeared to be the bouncing of a dead cat in the current textbook.
PI is facing heavy sales pressure
Dead cat bounce is a temporary, short-lived recovery in the price of long-term downtrend assets. Traders will come to think of a reversal as an ongoing one, but simply resume price dropping to a new low soon.
Pi’s breakout appeared to be the start of recovery after a few weeks of decline. However, the failure to maintain the subsequent rally and subsequent drops confirms it is a bouncing off of a dead cat, and the bearish momentum now threatens to push the Pi to an all-time low.
The PI/USD daily chart measurements show the balance of power (BOP) at -0.84.
The BOP indicator helps measure the strength of buyers and sellers in the market and identify changes in momentum. If that value is positive, buyers will dominate the market more than sellers and will encourage new prices to rise.
Conversely, negative BOP measurements indicate that sellers dominate the market and there is little resistance from buyers. This confirms sustained downward pressure and weakening investor confidence.
The negative BOP measurements of PI strengthen the bearish outlook and suggest that sales activity could continue unless new demand resurfaces.
Additionally, the PI’s moving average convergence divergence (MACD) indicator confirms a bearish bias towards AltCoin. During pressing, the PI’s MACD line (blue) is located below the signal line (orange).
MACD indicators identify trends and momentum in price movement. This helps traders find potential purchase or sale signals through a crossover between the MACD line and the signal line.
Like PI, when the MACD line is below the signal line, it shows bullish momentum and suggests a decline in purchasing activity. Traders consider this setup to be a sales signal. Therefore, it could exacerbate downward pressure on the price of Pi.
Trader’s eyes are struggling to hold the ground, so $0.40 support
If downward pressure persists, the PI can slide further, deepening the losses of holders acquired in last week’s breakout. In this scenario, Altcoin’s value could be revisited to an all-time low of $0.40.
Conversely, when market sentiment changes and purchase activities, the price of the PI network could rise to $0.66.
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.
