Pi Network Drops to All-Time Low as No New Demand Emerges

The native token of Pi Network has extended its poor performance for another day, falling 7% over the past 24 hours. The new drop has pushed the asset closer to the lower trend line of the narrow trading range it has been trading within since July 15, bringing the all-time low back into focus. With new demand still quite lacking, the question is no longer whether—but when—a collapse might occur. Will PI Collapse or Bounce Back? The price of the PI token has fluctuated within a narrow range since July 15, struggling to break free from the support level of $0.43 and the resistance level of $0.46. Despite several attempts to surpass the upper threshold, each price surge has failed due to weak demand, causing this token to revert to a sideways trend. In the spot market, the daily trading volume remains low, indicating a decline in market participation and little likelihood of a bullish reversal. Over the past day, trading volume fell by 14% and totaled 105 million dollars at the time of the press report.

When the price and trading volume of an asset fall simultaneously, this confirms that market interest has weakened and momentum from both buyers and sellers is fading. This indicates a lack of confidence among IP traders, which could lead to a decrease in price performance if the volume does not recover. Moreover, momentum indicators continue to show that buying pressure has fallen significantly. For example, the Balance of Power indicator (BoP) of PI is currently showing a negative result of -0.64 at the time of writing, indicating that selling pressure in the market is increasing.

The BoP indicator measures the strength of buyers against sellers in the market. When the value of this indicator is positive, buyers will dominate the market compared to sellers and drive a new upward momentum. Conversely, the negative BoP index signals that sellers are in control of the market, with little to no resistance from buyers. The BoP index of this altcoin reinforces the bearish outlook, indicating that selling activity may continue if new demand does not enter the market. PI Eyes $0.40 Breakdown Or $0.50 Breakout If the sell-off continues, the price could slip below the support level of $0.43. In this scenario, PI risks falling to an all-time low of $0.40. If the distribution continues, PI could even record a new low price.

On the other hand, a positive catalyst could push the price above the resistance level of $0.46. If this happens, the price of the PI token could rise to $0.50.