Pi Coin price risks a 40% drop to $0.26 as it breaks down from a bearish triangle, and CEX balances spike by 6M amid lagging market performance.
The price of Pi Coin may plummet by 40% as it continues to lag behind the majority of cryptocurrencies that have made strong attempts to rise over the past week.
Following PI’s downward breakout from a bearish pattern amid rising CEX balances that indicate traders are preparing to sell, the bearish pressure pulling the price down may intensify for the rest of the month.
Today, July 16, Pi Network is trading at $0.448 after declining 0.8% over the previous day.
Pi Coin Price Is At Risk Of Declining Due To Bearish Breakout
Since it has dropped 25% over the past month, the Pi Network currency has been underperforming compared to other altcoins.
A bearish descending triangle pattern is developing due to the continuous losses, and a downward breakout suggests a 40% drop may occur.
The 40% crash that this pattern portends is caused by the height differential between the triangle’s top resistance, $0.74, and its support, $0.44.
This implies that Pi Coin price may drop to $0.26 and set a new all-time low if bears confirm a closing below the support level with two successive candles.
Its consistent drop below the 50-day SMA line is the primary reason bears have prevailed, even though the long-term Pi Coin price projection is still optimistic for the current month.
Because there has been no bullish confirmation, buyers have remained on the sidelines, and sellers now control the price as it has failed to advance above this level.
However, as long as PI maintains the support level of $0.409, a new CoinGape research found a MACD positive divergence that could help a Pi Network price recovery.
According to the analysis, Pi Coin price may break out to the psychological resistance level of $1 if this signal is held and bulls defend this support.
Deposits For Pi Coin Exchange Enter Previous 24 Hours
Many PI Network tokens are shifting to spot cryptocurrency exchanges, indicating that current holders intend to sell.
This could hasten the decline from the bearish descending triangle pattern.
According to data from PiScan, 5.9 million PI have been moved to exchanges in the past day, with netflows totaling over 1.8 million.
The transfer of five million tokens from a wallet connected to the PI Foundation is also causing alarm.
The 40% decline in Pi Coin price, as indicated by the bearish chart pattern, may occur if these tokens are also migrating to exchanges and causing a panic that prompts other retail traders to begin selling.
However, the recent activity by a mystery wallet that purchased millions of Pi Coins has raised questions about whether the Pi Foundation is repurchasing tokens to assist a price rebound, which might counteract the unfavorable effect of these exchange inflows.
In conclusion, the price of Pi Coin is declining below a significant support level, indicating that bears are in charge.
A decline below the previous all-time low may occur shortly.
This decline may continue due to the substantial growth in the number of tokens flowing to exchanges.
