Is Pi Network about to bounce back or continue to fall?

Pi Network (PI) has fallen more than 4% in the past 7 days, reflecting a differentiated market sentiment, with key technical indicators sending mixed signals. The Directional Movement Index (DMI) indicates that the downward momentum is slowing, opening up the possibility of a trend reversal. Meanwhile, the CMF (Chaikin Money Flow) still maintains a slight inflow signal – a positive factor, although not very strong. Notably, the EMA lines are converging, indicating a consolidation phase. The price of PI is currently fluctuating just above the important support level at 0.601 USD – a key boundary for the upcoming trend. The next developments will depend on whether PI can maintain this support level or, conversely, break through the nearby resistance areas to establish a clearer recovery trend. The DMI signal of Pi Network is gradually losing its downward momentum. The DMI index of Pi Network shows that the ADX indicator – a measure of trend strength – has fallen to 34, compared to 44.59 just a day earlier. Previously, ADX surged from 16.89 to over 44 within three days, reflecting a strong trend that formed rapidly. However, the latest decline implies that the momentum of this trend is weakening. ADX does not measure the direction of price but only reflects the strength or weakness of a trend. A level below 20 indicates a sideways market or a lack of a clear trend, while above 25 indicates a strong trend. With ADX still holding above the 30 threshold, it can be affirmed that the Pi Network is still in a clear trend – but the momentum is slowing down, signaling the risk of a correction or consolidation in the short term.

According to the directional indicators, buying pressure is showing significant signs of increase. The +DI index has surged to 20.89 from just 4 points two days ago, indicating that buying pressure is returning to the market. On the contrary, -DI ( represents the selling force) falling sharply to 32.68 after hitting a peak of 70.57 just three days ago. This trend signals that the downward momentum is rapidly weakening, reflecting that the sellers are gradually losing their advantage. The narrowing gap between +DI and -DI, especially in the context of increased buying pressure, may signal a shift in market sentiment. If this trend continues – with +DI maintaining its upward momentum and -DI continuing to decline, Pi Network has the potential to enter a recovery phase or at least a neutral stage following the recent sell-off. CMF PI indicates light buying pressure The Chaikin Money Flow indicator (CMF) of the Pi Network is currently recorded at 0.07 – falling from the recent peak of 0.19 two days ago, but still higher than the level of -0.05 set three days ago. CMF is a tool for measuring the accumulation or distribution of cash flow, combining price and trading volume to determine whether money is flowing into or out of the market. A positive CMF value reflects buying pressure, while a negative value indicates that selling pressure is dominant. Typically, threshold levels above +0.1 or falling below -0.1 are considered strong signals for accumulation or distribution.

The current CMF level of PI at 0.07 indicates light but positive buying pressure. Although not strong enough to confirm a robust accumulation activity, it indicates that capital is still flowing into the assets, albeit not as strongly as two days ago. If the CMF continues to hold above the 0 level, it could support stability or a gradual recovery in price. However, if it drops below zero, it could signal weakening demand and potential downside risks. Is Pi Network about to recover or continue to fall? The EMA line of Pi Network currently shows a consolidation phase, after recovering from a sharp fall due to escalating conflict between Israel and Iran. The price action is fluctuating right above the crucial support level of 0.601 USD. If this level is breached, the price of PI could fall to 0.542 USD, and if the downward momentum intensifies, the price could decrease further to 0.4 USD. This structure reflects uncertainty, with no clear control over price increases or decreases at this time.

On a positive note, if PI breaks through the resistance levels at 0.647 USD and 0.658 USD, it could trigger a new upward trend. If the breakout is successful in these areas, PI may open the door for a move towards 0.796 USD. The current EMA setup is supporting a neutral stance, waiting for a decisive move in either direction.