Pi Network’s native token, PI, has flipped its crucial $0.47 support level into a new resistance point, signaling intensifying selling pressure and deepening bearish sentiment among investors.
According to market data analyzed over the past week, PI has been unable to sustain any upward momentum above the $0.47 mark since closing at $0.46 on July 4.
This price level, previously acting as a critical support floor, has now shifted into a formidable resistance zone, reflecting weakening confidence in a short-term recovery.
Technical Indicators Confirm Bearish Control
Data from PI/USD’s one-day Ichimoku Cloud chart underscores the deteriorating technical outlook. PI’s extended decline has left its price well below the Cloud’s Leading Spans A and B, which now pose dynamic resistance levels at $0.51 and $0.63.
The Ichimoku Cloud, a popular trend-following indicator, shows that assets trading below the Cloud face strong selling pressure, with bullish momentum largely absent.
When assets remain beneath the Cloud, they are generally considered to be in a bearish zone, where sellers dominate and prospects of upward reversal are slim without significant buying volume. Currently, PI’s position below these key levels highlights sustained market pessimism.
Institutional Confidence Slips as Smart Money Index Declines
Further compounding bearish signals is PI’s Smart Money Index (SMI), which has steadily fallen since June 25. As of today, the SMI sits at 1.22, representing a 9% decline over the period.
The SMI tracks the trading behavior of experienced investors, often institutions or large stakeholders, by analyzing price action during the first and last trading hours of the day.
Rising SMI values indicate growing institutional buying, while persistent declines, like PI’s recent trend, suggest increasing sell-offs and fading investor confidence.
This downtrend in the SMI implies that major token holders are reluctant to back a near-term rebound, intensifying the risk of further losses.
Looming Risks and Possible Scenarios
If selling accelerates, PI could slide below its newly formed support at $0.44, exposing the token to a potential drop toward its all-time low of $0.40.
According to data from CoinMarketCap, PI’s price action has been highly correlated with broader market sentiment, and further declines in Bitcoin or Ethereum could exacerbate its downside.
However, a surge in buying interest could provide a lifeline. A decisive break above the $0.47 resistance could open the path toward the psychological $0.50 barrier, which might attract momentum traders and short-term speculators.
Broader Market Context
The weakness in PI mirrors a cautious tone across the altcoin market amid ongoing regulatory uncertainty and lackluster liquidity conditions.
According to recent Glassnode data, overall market participation has dwindled as traders wait for clearer signals from macroeconomic indicators, such as U.S. inflation data and Federal Reserve policy updates, which could indirectly influence sentiment toward riskier digital assets like PI.
Investors should closely watch whether PI can hold current support levels or if bearish momentum will push the token to retest historic lows.
