Pi Network (PI) is among the biggest losers of the capital inflow that swept the crypto market over the weekend.
Selling has reduced the PI by about 12%, and there is little sign of the pressure easing as seller momentum picks up. CoinMarketCap data shows trading volume jumped 129% to $17.7 million, underlining the strength behind the move.
The bigger concern is that the PI could fall below the level it set early on Monday, July 13, recording an all-time low.
PI’s descending channel keeps all-time lows in play
The all-time low remains in play, given how P.I. It reacted to the support level it recently broke.
The token has been trading within a descending channel for months, consolidating at lower levels between parallel support and resistance lines. Such structures often precede a stronger rise, but they can just as easily break down to the downside.
The odds for the PI now favor a breakout and the outcome depends on whether the price closes above or below the support line it is currently testing. A close below this line, where the selling pressure remains intact, indicates further downward movements, while the recovery may ensure that the PI remains within the channel.
Bears tighten control as breakouts deepen
The bears remain in complete control, with sell-side volume steadily increasing.
The Accumulation/Distribution indicator, which reads whether buyers or sellers dominate an asset’s trade, confirms their dominance, with a cumulative reading falling to -343 million at press time.
The Money Flow Index, which tracks capital flowing into and out of an asset, has also fallen sharply. MFI is currently reading 23, near the lower end of the 20 to 50 capital outflow zone, but is up slightly.
If the MFI remains in this lower band without breaking 20, selling pressure and capital outflows may intensify. A move below 20 will flag the PI as oversold and open the door to recovery and new entries.
Funding Rate points to deeper losses
The Funding Rate, which tracks whether investors position their capital in a bullish or bearish direction, shows that the market is predominantly in a downward trend. At the time of writing, the rate had fallen to roughly -0.0565% as capital concentrated on the short side.
The deepening downtrend at a time when market momentum is already fragile suggests the PI remains on the downside and registers further losses.
Final Summary
- PI fell almost 12% over the weekend as transaction volume jumped 129% to $17.7 million and sellers showed no signs of slowing down.
- The Accumulation/Distribution, Money Flow Index, and Funding Rate readings are all showing weak bearish sentiment, keeping the all-time low firmly on the table unless the PI regains its current support.
