Pi Network Faces Record Lows Amid Market Uncertainty: Key Insights on Price Action and Investor Behavior

The Pi Network (Pi) cryptocurrency is navigating a turbulent phase, with its price hitting an all-time low amidst ongoing market pressures. In parallel, centralized exchange (CEX) wallet balances for Pi witnessed an unprecedented net outflow of nearly 8 million tokens within just 24 hours. While this exodus may suggest dip-buying activity by opportunistic investors, the token continues to grapple with bearish technical indicators, leaving its near-term outlook uncertain.

Market Snapshot: Pi Hits Record Low Under Selling Pressure

As of September 23, Pi was trading at $4,176.92 on CoinMarketCap, representing a 2.82% drop from the previous day. Earlier that day, the token touched an intraday low of $4,129.8, signaling a surge in short-term selling pressure. Pi's persistent struggle has pulled it below its 100-hour Simple Moving Average (SMA), a technical indicator widely interpreted as a bearish signal for short-term momentum.

CEX Wallet Outflow Highlights Dip-Buying Activity

Despite reassurances from the Pi Network team, investor sentiment remains subdued. Co-founders Nicolas Kokkalis and Chengdiao Fan attempted to bolster confidence during a recent community meetup held in Seoul. They highlighted upcoming protocol enhancements, including AI-powered Know Your Customer (KYC) features aimed at improving platform security and scalability. However, these announcements failed to shift the prevailing bearish outlook.

Data from PiScan reveals a net outflow of 7.96 million Pi tokens from CEX wallets in the 24 hours following the Seoul event. This sharp decline suggests that some investors perceive the current price drop as an opportunity to accumulate the token at bargain levels. On September 22, Pi hit an intraday low of $0.1842 but rebounded by the end of the day to $0.2860, hinting at renewed interest from value-seeking traders.

Technical Analysis: Key Levels and Downside Risks

Persistent Bearish Momentum

The technical outlook for Pi remains grim. Currently trading at approximately $0.2700, Pi has logged its third consecutive day of declines. Its inability to sustain a breakout above earlier trendline resistance has heightened the risk of re-entering its descending channel. Traders are closely monitoring the S2 pivot level at $0.2387 as a critical short-term price target.

Critical Support at $0.1842

A more concerning scenario involves a potential drop below the $0.1842 support level. Such a breach could pave the way for the token to test its S3 pivot at $0.1555, a level that would mark a notable deterioration in market confidence. This bearish perspective is reinforced by the Relative Strength Index (RSI), which currently hovers in oversold territory at 25, alongside a downward-trending Moving Average Convergence Divergence (MACD) indicator. Both metrics suggest continued selling pressure in the immediate term.

Resistance Levels to Watch: $0.2996 and Beyond

On the upside, initial resistance lies at the S1 pivot level of $0.2996. A break above this mark could open the door to testing further resistance at $0.3220, provided by the primary trendline. Additionally, the $0.2838 central pivot level remains a crucial hurdle that Pi must close above to establish any meaningful recovery momentum.

Investor Sentiment: Accumulation in a Bearish Market

Amid these technical challenges, the sharp decline in CEX wallet balances showcases the efforts of some long-term investors to accumulate Pi at current low prices. This dip-buying activity has the potential to stabilize prices if market sentiment recovers and overall selling pressure abates. However, whether these acquisitions can catalyze a broader rally will depend on Pi’s ability to defend its key support levels and achieve significant upward breakouts.

The Road Ahead for Pi: Stabilization or Further Declines?

For now, Pi remains caught in a bearish cycle characterized by weak investor confidence and unfavorable technical indicators. The cryptocurrency market at large seems to be in a wait-and-see mode, with a keen focus on whether Pi can sustain the $0.1842 support level. Successfully holding this level could inspire greater confidence among traders and nudge the token toward testing its next resistance points.

Conversely, a failure to maintain above this crucial threshold would likely accelerate the selling momentum, driving Pi toward deeper lows. While dip-buying signals a modicum of optimism for long-term prospects, Pi’s short-term trajectory remains tethered to its ability to navigate these pivotal price levels.