PI has continued its downtrend, slipping 5% in the last 24 hours despite the general market rally recorded over the past day.
The altcoin’s downturn signals weakening buying pressure as traders appear to shift their focus away from PI.
Pi Struggles as Market Participation Declines
Key technical indicators reinforce the bearish outlook for Pi. Its On-Balance-Volume (OBV), which tracks buying and selling pressure, has been steadily falling, indicating a decline in market participation and liquidity.
As of this writing, PI’s OBV sits at an all-time low of -845.93 million, falling by over 2000% since the beginning of March.
When an asset’s OBV plunges like this, it indicates a decline in buying activity and increasing selloffs. This suggests that more PI traders are offloading the asset than accumulating it, increasing the downward pressure on its price.
Further, PI has remained in a descending parallel channel, a pattern that reflects its downward trend. According to readings from the PI/USD one-day chart, PI has traded within this bearish pattern since reaching an all-time high of $3 on February 26.
A descending parallel channel is formed when an asset’s price moves between two downward-sloping parallel trendlines. This structure indicates a consistent pattern of lower highs and lower lows, suggesting a sustained bearish trend. Here, token sellers maintain control and prevent significant upward momentum.
The pattern hints that PI’s price may continue to decline until it breaks above the channel or finds strong support.
Pi Risks Further Decline as Bears Attempt to Drag Price Below $0.62
PI’s strengthening selling pressure puts it at risk of breaking below the descending parallel channel. If this happens, the token’s downtrend gains momentum, pushing its price to $0.62.
However, if the bulls regain dominance and buying activity spikes, PI could reverse its current trend and rally toward $1.13.
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