Pi Network Price Prediction: big dump 92% to 0.20 USD, indicator divergence Rebound imminent?

The price of Pi Network (PI) has undergone a brutal correction, falling over 92% from its ATH, and is currently consolidating near the 0.20 USD support level. The price prediction for Pi Network faces indicator divergence; Chaikin Money Flow has broken the zero signal line indicating an increase in buying volume, but the Moving Average Convergence Divergence (MACD) has formed a bearish crossover, with the 12-day EMA falling below the 26-day EMA.

PI coin falls 92%: The brutal adjustment from peak to trough

The price of Pi Network (PI) has experienced a brutal adjustment, falling over 90% from its ATH. However, market sentiment remains divided. PI coin bulls believe that the market may rebound, while bears think that enthusiasm alone cannot sustain long-term growth. Amidst this volatile fluctuation, the trading price of PI is $0.21.

This drastic fall in the price must be taken seriously in the Pi Network price prediction analysis. A 92% retracement means that investors who bought at the peak currently have only 8% of their principal left, and this heavy loss has triggered panic and doubt among a large number of users. Pi Network, as a mobile mining project that once had tens of millions of users, has seen its token's performance fall far below community expectations after officially launching on exchanges, and this gap has intensified the market's pessimistic sentiment.

However, the divergence is not limited to bulls and bears; there are also discrepancies in the indicators across different time frames. This technical contradiction makes the price prediction of Pi Network more complex, and traders must cautiously interpret the meanings of various indicators.

CMF Bullish Signal: Buying Volume is Rising

As mentioned multiple times, the price of PI Coin has fallen into a descending triangle on the daily chart. Although this structure is bearish, some indicators have issued bullish signals. For example, the Chaikin Money Flow (CMF) has broken above the zero signal line, indicating an increase in buying volume.

CMF is a momentum indicator that combines price and volume to measure the strength of money flowing in or out. When CMF is above zero, it indicates that buying pressure is greater than selling pressure, and funds are flowing into the asset. When CMF breaks above the zero line from the negative territory, it often signals that the trend may shift from falling to rising.

In the Pi Network price prediction, a CMF breakthrough of the zero line is an important bullish signal. This indicates that despite the price still consolidating at a low level, smart money is quietly flowing in. This capital flow divergence from the price trend often occurs in the early stages of a trend reversal. While the price is still falling or moving sideways, internal funds have already begun to position themselves, waiting for the price to catch up with the pace of the capital.

Therefore, the price of PI may hold the support level of $0.21. Once it holds that support level, PI will attempt to rise to the resistance level of $0.36. This will represent approximately a 71% rebound space from the current price, making it attractive for short-term traders.

MACD bearish crossover: selling pressure has not yet subsided

(Source: Trading View)

However, some other indicators show a bearish trend, one of which is the Moving Average Convergence Divergence (MACD). As of the writing of this article, the MACD reading is negative. A closer look reveals that it has also formed a bearish crossover, with the 12-day EMA (blue) falling below the 26-day EMA (orange).

MACD is a trend-following indicator composed of the fast line, slow line, and histogram. When the fast line crosses downward through the slow line, it forms a bearish crossover, usually indicating the beginning or continuation of a downtrend. A negative MACD reading that forms a bearish crossover is a clear bearish signal in Pi Network price prediction.

Therefore, the price of PI may struggle to maintain the support level of $0.21 and may also find it difficult to break through the upper resistance level of $0.36. If the bearish signals from the MACD dominate the market, PI may fall below the support of $0.21, with the next support level possibly at $0.18 or even lower.

The contradictory signals of CMF and MACD make the price prediction for Pi Network complex. One indicator shows capital inflow, while the other indicates momentum decline. This divergence often occurs at market turning points when a trend is about to change but has not yet fully established itself. Traders need to wait for one of the signals to be confirmed or negated in order to make a clearer judgment.

Descending Wedge Pattern: 4-hour chart suggests bullish reversal

(Source: Trading View)

On the 4-hour chart, the price of PI coin shows signs of a potential momentum shift. Currently, the trading of this altcoin is within a descending wedge pattern - once the price breaks above the upward trendline, this structure typically indicates a bullish reversal.

A descending wedge is a classic bullish pattern in technical analysis. It is characterized by the price oscillating between two downward-sloping trend lines, with the range of fluctuation gradually narrowing. This compression often indicates the accumulation of energy, and once the upper trend line is broken, the released momentum is usually very strong.

Currently, the PI is gradually approaching the test of that upper limit, indicating that buyers may be preparing for a breakout attempt. The formation of this wedge reflects a reduction in selling pressure, as each downward move has lost momentum, and prices are beginning to compress into a narrower range.

If the bulls can generate enough trading volume to break through the upper trend line, it may confirm the breakout and pave the way for a short-term recovery rebound. In this case, the price of PI may first reclaim the resistance level of $0.24 before aiming for higher targets. If it breaks through $0.24, the next target will be $0.30, ultimately pointing to the resistance level of $0.36 on the daily chart.

However, if the buying momentum weakens and the PI is rejected in that area, altcoins may stay within the wedge for a while and face downside risks, falling to a support level of $0.21 or even lower. A failure to break through often triggers a disappointing sell-off, as bulls expecting a breakout cut their losses.

Key Price Levels and Dual Scenario Paths

Overall, the current trend shows early signs of a bullish reversal. However, the next few trading days will be crucial in determining whether buyers can continue to rise under this pressure and convert the structure into momentum.

Pi Network Price Prediction Dual Scenario Path:

Bullish Scenario: Hold the support level at $0.21, break through the descending wedge's uptrend line, first target $0.24, then challenge $0.36.

Bearish Scenario: If it breaks below the support level of 0.21 USD, it may quickly drop to 0.18 USD, with extreme cases testing 0.15 USD.

The key judgment criterion lies in the trading volume. If the breakthrough is accompanied by an increase in volume, the confirmation of effectiveness will be significantly enhanced. Conversely, if the breakthrough occurs with decreased volume or is rejected near the upward trend line, the likelihood of a bearish scenario will increase. The continuous rise of the CMF combined with the formation of a bottom in the MACD (the histogram turning positive) will be the strongest bullish combination signal.

From a risk management perspective, traders should wait for clearer signals before taking action. If choosing to go long, a small position can be established around $0.21, with a stop loss set below $0.20 and a target of $0.24. If choosing to go short or hold, one can wait for a confirmation after breaking below $0.21 before considering.

The fundamental issues of Pi Network still persist. The 92% fall reflects the market's reassessment of its actual value. Unless the project can launch substantial applications and ecological expansion, any technical rebound may only be temporary and unable to reverse the long-term downward trend.