Pi Network Price Forecast: Bearish streak nears critical support trendline

Pi Network edges lower on Friday, marking the third straight bearish candle and approaching a crucial support trendline.
On-chain data shows an increase in CEXs' reserves, risking additional selling pressure.
The technical outlook indicates short-term risk, as the MACD indicator is flashing a sell signal.

Pi Network (PI) edges lower on Friday for the third consecutive day, approaching a local support trendline. The on-chain data suggests an increase in supply pressure as Centralized Exchanges (CEXs) experience a surge in inflows. Technically, the pullback in PI risks further losses, as the Moving Average Convergence Divergence (MACD) indicator is flashing a sell signal.

CEXs signal an increase in selling pressure

PiScan data shows that user deposits over Pi Network’s Know Your Business (KYB)-verified CEXs totaled 2.75 million PI tokens in the last 24 hours, outpacing the withdrawals of 1.76 million tokens. This indicates a daily net inflow of CEXs, reflecting a persistent risk-averse sentiment among investors.

CEXs wallet balances. Source: PiScan.

Technical outlook: Will Pi Network break below its local support trendline?

Pi Network retraces toward a local support trendline formed by connecting the lows of October 22 and November 4, which has provided multiple rebounds since inception. If PI breaks below this trendline near the December 1 low at $0.2204, it could extend the decline to the $0.2000 psychological mark, followed by the $0.1919 support, aligning with the October 11 low.

The MACD indicator on the daily chart displays a steady decline in the average lines, inching closer to the zero line. If the falling red and blue lines cross into the negative territory, PI could experience increased bearish momentum.

Although the MACD signals a sell, the Relative Strength Index (RSI) is at 46 on the same chart, extending a lateral trend near the centre line. However, the room on the downside between RSI and the oversold zone warns of bearish potential.

PI/USDT daily price chart.

To reinstate an uptrend, PI should reclaim last week’s high at $0.2841, which could extend the rally to the August 1 low at $0.3220.