Jakarta, Pintu News – Last week, risk appetite returned to the crypto market, driving up the prices of many altcoins. However, earlier this week the situation reversed.
Several crypto assets – including Pi Network – have experienced deeper declines. Most notably, Pi Network’s price plummeted to an all-time low of $0.25 after losing around 20% of its value in just the last 24 hours (22/9).
In this analysis, the CCN website looks at the causes of PI’s sharp price drop and the likely direction of the next price movement.
A few months ago, PI was one of the best-performing crypto assets, delivering huge gains and breaking a record high price of $2.98. But now, it’s a very different story. Pi Network’s price has dropped 90% from its peak, reflecting a sharp reversal in market sentiment and demand.
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On the 4-hour chart (22/9), PI was previously moving in a symmetrical triangle pattern since August 30 until last week. However, the pattern has now broken downwards, confirming bearish momentum.
After the breakout, the price of PI formed two consecutive red candlesticks, further amplifying the selling pressure. At the same time, the Relative Strength Index plummeted to 10.54 – indicating extreme oversold conditions.
A very low RSI signals intense selling pressure, but it can also be a signal that the price drop is getting close to exhaustion.
In some cases, oversold conditions may trigger a temporary bounce, although a sustained recovery still requires the return of strong demand in the market.
On the daily chart (22/9), the prospects for a quick recovery look less convincing. One of the main culprits is the Bull Bear Power indicator.
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Currently, BBP has moved into the negative zone, signaling that selling pressure is much stronger than buying strength. This indicates that although oversold conditions could trigger a short-term bounce, the PI’s main trend is likely to remain under bearish control until a clear shift in momentum occurs.
In addition, the red line on the Supertrend indicator is now above the price, giving an additional bearish signal. This combination suggests that downside risks are still high, and that the bullish side may struggle to reverse the trend direction without a major change in market sentiment.
If conditions remain the same, the Pi Network price risks dropping to a new low of $0.19. However, if buying pressure increases, the situation could be different. In a positive scenario, the PI price could potentially break the resistance at $0.53. If successful, this could push the value of the crypto towards $0.75.
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
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