The Weekly Loss Rate of Pi Network Reaches 15% – What Are the Causes Behind This Decline?

Pi Network is showing increasing technical weakness, falling nearly 15% over the past seven days and 4.4% in the last 24 hours, with a market capitalization currently at $5.12 billion. Trading Volume has increased by 25% in the past day, reaching $104.6 million, signaling increased activity amid a deeper downtrend. Key indicators such as ADX, CMF, and EMA structure all indicate that the downward momentum is increasing, with selling pressure intensifying and price action struggling to hold support. Unless momentum changes, PI appears to be more vulnerable in the short term. The Downtrend of PI Network is Strengthening The Directional Movement Index chart (DMI) for Pi Network (PI) shows a significant increase in the Average Directional Index (ADX), rising from 11.46 to 21 just a day prior. ADX measures the strength of a trend, regardless of the direction. Generally, an ADX below 20 indicates a weak market or no trend, while an index above 20 indicates that the trend is starting to strengthen. With the ADX of PI currently surpassing this threshold, the data suggests that a more decisive move - either upward or downward - may be underway.

Looking deeper, +DI (Positive Directional Indicator) has fallen to 13.21 from a level of 20.93 two days ago, while -DI (Negative Directional Indicator) has soared to 31.92 from a level of 23.48. This widening gap, with -DI clearly dominant, signals increasing downward pressure on PI. When -DI rises above +DI along with a strengthening ADX, it typically confirms that the downtrend is accelerating. In summary, the indicators are aligning in a way that suggests PI may be entering a stronger downtrend and traders should closely monitor price movements. The Indicators Show Strong Selling Pressure The Chaikin Money Flow (CMF) for Pi Network (PI) has fallen sharply to -0.20, down from 0.08 three days ago and -0.08 one day ago. CMF is a volume-based indicator used to measure the flow of money into and out of an asset over a specific period, usually 20 or 21 days. A value above 0 typically indicates buying pressure and accumulation, while a value below 0 indicates selling pressure and distribution. A CMF index exceeding ±0.10 is generally considered significant, with deeper negative values indicating continuous outflow.

With the CMF of PI currently at -0.20—the lowest level since May 17—there is a strong signal indicating that the sellers are in control. This sharp decline reflects the increasing outflow of capital from assets, and when combined with the recent weak prices, it reinforces the bearish outlook. If the CMF continues to fall or remain at an extremely negative level, this may indicate that any recovery attempts could face significant resistance due to a lack of support from bullish trading volume. PI Price Heading Towards Lower Support Level The Exponential Moving Average indicators (EMA) for PI are still falling, with short-term EMAs below long-term EMAs—a clear sign that the downward trend is still being controlled. The increasing gap between these EMA lines reinforces the strength of the current downtrend. If the PI continues to slide, the next support level is at $0.66, and losing this level could open the door for the next drop to $0.57.

On the other hand, if the PI reverses its current trajectory, the first important resistance level to watch is $0.727. A breakthrough above that level could signal a short-term recovery and potentially push the price higher towards $0.86. However, until the short-term EMA line starts to flatten out or crosses above the long-term EMA line, any bullish attempts may still be vulnerable to selling pressure.