Pi Network (PI) Volume Dives to Record Lows After 80% Price Decline — Recovery Still Far Off

Key Takeaways

• PI’s trading volume has plunged from over $3.5 billion in February to under $40 million, signaling weak interest.
• Bollinger Bands contraction and negative Awesome Oscillator show low volatility and bearish momentum.
• PI’s price could drop to $0.40 without renewed demand, though a volume spike might push it toward $1.

The trading volume of PI, Pi Network’s native coin, has plunged to its lowest level since it went live in February.

This sharp drop follows an 80% decline in price from its all-time high of $2.99, which was reached shortly after trading began.

While some may believe PI has bottomed out, technical indicators suggest otherwise. Here’s why the PI coin price may not be done falling yet.

Interest in PI Wanes

On Feb. 26, PI’s trading volume surged above $3.5 billion. This spike happened as the project made the coin tradable after millions of users had waited years.

Today, the same volume at billions has dropped below $40 million, according to data from Santiment. The drop in trading volume indicates low buying and selling of PI.

It also implies that the broader market interest in cryptocurrency is fading compared to the launch in February. PI’s price hovers around $0.58 at press time, representing a 10% decline within the last seven days.

Sometimes, the drop in volume alongside price indicates weak selling pressure and a chance for a bullish reversal. But that mostly happens when traders begin to buy the dip as sellers get exhausted.

But in this case, demand has remained extremely low. Therefore, if PI’s trading volume continues to fall, it is likely that the price might also follow in the same direction.

Volatility Low

Furthermore, the 4-hour PI/USD chart also supports the move. The image below shows that the Bollinger Bands (BB) have contracted, indicating low volatility.

With the BB squeezing, PI’s price will likely keep consolidating around the same region. However, the Awesome Oscillator (AO) reading has dropped to the negative region at -0.0073.

The AO measures momentum by comparing recent and historic price movements. When it is positive, momentum is bullish.

Since it is negative as of this writing, it indicates bearish momentum. Should this trend remain the same, the PI coin price will likely continue trading sideways or drop below $0.58.

PI Price Analysis: Down, Not Out

On the daily chart, PI’s price is still below the 20-day Exponential Moving Average (EMA) (blue), which means that the trend around the coin is weak, especially as the indicator acts as key support.

Also, the Bull Bear Power (BBP) shows a negative reading. This negative reading indicates bears are in control of PI’s price action.

Should bulls fail to take control, the trend around the cryptocurrency might remain bearish. Regarding the price targets, PI might experience a drop toward $0.40 in the short term.

On the contrary, this trend might change if buying pressure increases amid the Bollinger Bands squeeze.

In that case, PI’s price could breach the resistance at $0.74 and retest $1.