Recently, Pi Network (PI) price has displayed a weak outlook in technical indicators; The price fell below important long-term resistance levels, signaling a cooling in investor expectations. Following a failed breakout attempt, the price has returned to the current trading range, indicating that the momentum is on the downside again. In this context, PI may decline towards the lower band of the range, around $0.20, in the coming period.
Pressure Increases in Technical Outlook
Pi Network price fell below critical resistance and value area high levels in the upper time frames. This shows that buyers are not able to control the upper band and selling pressure is still strong. The failure of the recent breakout attempt and the subsequent “bearish engulfing” (double-sided bearish candle) formation revealed that the market’s desire to move out of the range was not met. Additionally, the price is trading below the 0.618 Fib resistance level; This indicates weakness at the point of control.
A return to the range brought the price closer to the historical average concentration of trading volume. However, the response from this region remained weak; There was no significant upward momentum. The overall technical picture shows that selling pressure is still dominant and the upcoming price movement may be downward.
Regulation and Ecosystem Developments Did Not Affect the Price
On the other hand, Pi Network’s application for MiCA compliance is seen as an important step towards gaining legal status in the European market. This application increases the possibility of the project being listed on regulated exchanges in Europe.
Additionally, the steps taken by Pi Network to expand its ecosystem, especially the deepening of its partnership with CiDi Games in the Web3 gaming field, point to the potential of the project to increase real-world use cases. However, these positive developments were not enough to overcome technical pressure in the short term; The price still remains under pressure.
If the price cannot maintain the control point on a daily closing basis, the most likely scenario is that PI will move towards the “value area low” level around $0.20 in the coming period. This level represents the lower band of the current trading range. At the same time, the accumulation of liquidity below $0.20 shows that the price may quickly wick in this direction (sudden decline and recovery).
Of course, a strong resistance break and high purchase volume are required for this scenario to be deemed invalid. However, no such catalyst appears in the market right now.
