Key Takeaways
- PI’s price has dropped 30% to $0.87 despite the Pi Core team launching a $100 million developer fund.
- The sharp decline suggests a classic “sell the news” reaction following bullish momentum earlier in the week.
- The bear flag pattern on the 2-hour chart hints at further downside, potentially toward $0.72 or even $0.57.
PI’s price is still down two days after the Pi Core Team announced a $100 million developer support initiative. As of writing, the Pi Network price trades at $0.87, down 30% from where it stood on Tuesday, May 13.
Before the decline, the cryptocurrency had surged to $1.65, indicating bullish momentum and a potential push to new highs. However, the sharp reversal that followed the funding news suggests the move became a “sell the news” reaction.
So what’s next for PI?
More Money, But Lower PI Value
Using its official X (formerly Twitter) handle, Pi Network disclosed the launch of a $100 million fund. According to the announcement, it will hold the fund in PI tokens and use it to support startups building real-world use cases for the cryptocurrency.
“Pi Network Ventures has officially launched—a $100 million initiative, held in Pi and USD, to invest in startups and businesses that advance the utility and real-world adoption of Pi,” The project stated .
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So far, the project has not disclosed if it has started distribution. However, the Pi Network price action remains bearish.
On the 4-hour chart, the Pi Network price has dropped below the 20-period Exponential Moving Average (EMA). The 20 EMA typically acts as a support.
Thus, when the price is above it, the trend is bullish. But since it is the other way around, PI’s price is unlikely to experience recovery soon.
CCN also noticed a dip in the Relative Strength Index (RSI) reading to support this outlook. When the RSI rating increases, momentum is bullish.
Therefore, the decline below the neutral line indicates bearish momentum around PI coin. Should this trend remain the same, the PI’s price might drop below the underlying support at $0.83.
PI Price Analysis: Bear Flag Appears
On looking at the 2-hour chart, we observed that the Pi Network price has formed a bear flag. A bear flag is a pattern that indicates the continuation of a downward trend after a brief pause or consolidation.
The setup began with a sharp price drop (the flagpole), followed by a brief period of consolidation (the flag). PI is trading near the lower trendline and appears on the verge of a breakdown.
In addition, the Bull Bear Power (BBP) reading has dropped to the negative region. This decline indicates that bears have outpaced bullish pressure.
Thus, if this trend remains the same, the Pi Network price could slide to the support at $0.72. In a highly bearish scenario, it could decline to $0.57.
However, if the sentiment around cryptocurrency turns bullish, the demand for PI coins might increase.
If that were to happen, PI’s price might surge toward $1.25 at the 0.618 golden ratio.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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