Pi Network recently unveiled significant technical advancements, including mainnet migration for millions of users and innovative palm print authentication testing. However, despite these positive developments and a slight uptick in its token (PI), the broader market sentiment reveals a stubbornly bearish outlook, leaving investors at a critical juncture.
Deep-Seated Bearish Sentiment
Despite a reported 2.03% rally and increased trading volume, the recent technical progress for Pi Network has done little to fundamentally shift the token's negative trajectory. Higher timeframes remain dominated by sellers, a trend highlighted by a consistently negative Chaikin Money Flow (CMF) reading and a bearish MACD crossover nearly two weeks ago. This confluence of indicators points to prevailing selling pressure and a consistent outflow of capital from the PI market, overshadowing any short-term positive news.
Navigating Short-Term Swings and Long-Term Resistance
While a short-term price bounce towards the $0.19-$0.20 range is plausible, based on Fibonacci retracement levels and fleeting signs of bullishness on the MACD, this potential rally faces strong headwinds. The token recently encountered significant rejection at the $0.173 supply zone, indicating robust resistance. For traders, the prevailing advice leans towards caution: the current market conditions do not support long positions for swing traders, with a retest of the $0.20 level potentially offering a more favorable risk-reward for shorting opportunities. A definitive shift in the bearish bias would only occur if PI were to rally convincingly beyond the $0.216 mark.
