The Pi Network price has slumped in the past few days, moving from last month’s high of $0.2821 to the current $0.2050. It has dropped by 27%, meaning that it has moved into a technical bear market. Still, its double-top pattern points to more downside in the near term.
Pi Network Price Double-Top Pattern Points to More Downside
The daily timeframe chart reveals that the Pi Coin price has come under pressure in the past few days. It formed a double-top pattern at $0.2821 and a neckline at $0.2036, its lowest level in November this year. This is one of the most common bearish patterns in technical analysis.
The Pi Network price has remained below the 50-day Exponential Moving Average (EMA). It has moved below the Supertrend indicator, a sign that the downtrend is continuing.
Also, the Relative Strength Index (RSI) has moved from the overbought level of 70 to the current 41. The MACD indicator has moved below the zero line.
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Therefore, the token will likely continue falling as sellers target the next key support level at $0.1530. This price was its lowest point in October this year, which is about 25% below the current level.
On the other hand, a move above the important resistance level at $0.2300 will invalidate the bearish outlook.
Pi Coin Has Crashed Amid Weak Demand
The ongoing Pi Network price crash has coincided with the lack of demand from investors as evidenced by the relatively low volume for a coin of its size.
Data compiled by CoinGecko shows that the 24-hour volume dropped to less than $10.4 million, a tiny amount for a cryptocurrency with a market capitalization of $1.75 billion and a fully diluted valuation (FDV) of over $2.6 billion.
The lack of demand is happening despite some notable developments. One of the most important one came last week when the developers unveiled an upgrade for its decentralized exchange (DEX) and automated market maker (AMM), which are now in the testnet.
The upgrade introduced new features that will make it easier for pioneers to have a better user experience. It happened as the developers prepared to launch its mainnet, possibly in the first quarter of next year.
Pi Network price also remained under pressure as the developers continued to carry out the upgrade to Stellar’s Protocol 23, which will also happen possibly into the first quarter of the year.
Meanwhile, the most prominent whale in the Pi Network restarted his purchases two days ago when he moved 3.48 million tokens from OKX to self-custody. He now holds over 394 million tokens currently worth over $80 million, making him the biggest Pi holder.
Therefore, the token is falling as Pi Network’s challenges, including the lack of major exchange listings and the ongoing token unlocks, are boosting its total supply in circulation.
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