Pi Network’s native token, Pi, has broken below a critical support level that had held its price steady between September 23 and October 6, preventing any significant dips.
However, since falling beneath this floor on Tuesday, the token has trended downward amid rising sell-offs. It now eyes a potential revisit to its all-time low of $0.1842.
Pi Plunges Below Key Support
PI currently trades at $0.2315, down 6% from its Tuesday close of $0.2466, and continues to trend lower. On the daily chart, PI trades significantly below its 20-day exponential moving average (EMA), highlighting traders’ preference for selloffs.
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At press time, this key moving average forms dynamic resistance above PI’s price at $0.2744. The 20-day EMA measures an asset’s average trading price over the past 20 days, giving more weight to recent prices.
When an asset trades below its 20-day EMA, it indicates that sellers dominate the market and that short-term momentum is bearish.
Traders usually see this as a signal that the asset could face further declines unless buying pressure returns to push the price back above the moving average. This puts PI at risk of extending its losses to a new low.
Moreover, PI’s Aroon Down Line, which is at 100% as of this writing, supports this bearish outlook.
The Aroon indicator measures the strength and direction of a trend. It consists of two lines: the Aroon Up, which tracks the time since the last high, and the Aroon Down, which tracks the time since the previous low.
When the Aroon Down Line reaches 100%, the asset has recently made a new low within the chosen period, indicating a strong downward trend.
This suggests that PI sellers are firmly in control, and the current decline could continue, as the market shows little sign of bullish reversal.
PI Holders Brace for Potential New Lows
For PI token holders, the current market action raises concerns of a potential new price low. If selling pressure continues and demand fails to recover, PI could retest its current all-time low, which forms support at $0.1842.
If demand weakens at this level and it gives way, PI could plunge below its current price bottom.
On the other hand, any renewed buyer interest could stabilize the token and prevent further losses. Should buyers step in, it may trigger a short-term rebound toward the breakout line at $0.2573.
The post Why PI Coin Holders Might Need to Prepare for a Fresh Price Low appeared first on BeInCrypto.
