Why is PI Network (PI) Down Today? Potential Breakout?

The Pi Network token (PI) has been on a consistent 13-day decline after a brief recovery above $1.79 on March 13. Facing strong resistance at the $1 mark, the token has lost over 3% of its value in the last 24 hours. Factors such as token unlocks, increased activity on centralized exchanges, and major exchanges ignoring listing requests have added to the downward pressure, leaving PI struggling to hold above the critical $1 level.

In the past week, PI has dropped over 20% and has fallen from 17th to 27th in market rankings, according to Coingecko data. As of now, its market cap stands at $6.2 billion, reflecting a loss of more than $1.4 billion over the same period.

Earlier this month, Pi Network introduced two-factor authentication (2FA) to boost security for users. This new feature ensures the safety of users' accounts and their Pi tokens. It is a key step in the ongoing transition from the enclosed mining app to the Open Network mainnet blockchain.

PI/USDT Chart Update

Analysis of the PI/USDT chart on TradingView highlights a falling wedge pattern on the 4-hour timeframe. This pattern, often considered bullish, forms when an asset's price consolidates between two downward-sloping, converging trendlines. Despite consistent lower lows and lower highs, the narrowing price range points to decreasing volatility.

Support near the lower trendline of the descending channel held firm at $0.87, signaling buyers' efforts to push prices higher. Currently, PI is consolidating just below its 20-day Moving Average (blue line), which aligns with the wedge's upper trendline.

Breakout Potential

The falling wedge pattern suggests growing buyer interest as selling pressure diminishes. This could lead to a breakout above the upper trendline. The price squeeze near the resistance level further supports this possibility.

Even with PiDaoSwap, a decentralized exchange added to the Pi ecosystem, buyers have yet to show enough confidence to significantly push the price. At the time of writing, PI is trading around $0.91. Traders often watch for a breakout above the wedge’s upper trendline as a potential entry signal. However, while this pattern is generally seen as bullish, it’s not foolproof. Traders are often encouraged to combine this analysis with other indicators and tools to confirm price direction.