Pi Network Token Pumps—But Here Comes the Bearish Hangover

Another day, another crypto rally—Pi Network''s token is riding the wave, but technicals hint at trouble ahead. That ''up only'' momentum? It''s looking shaky.

Divergence Alert:
Price action flirts with new highs while key indicators slump. Classic bearish setup—traders love to ignore these until it''s too late.

Wall Street''s Take:
''Fundamentals remain strong'' (translation: bagholders need exit liquidity). Meanwhile, retail FOMO meets institutional smirk.

One rule never changes: When the charts whisper ''caution,'' the degens yell ''YOLO.'' Place your bets.

The PI Token Rally Lacks Conviction

Readings from the PI/USD one-day chart show the token’s Chaikin Money FLOW (CMF) below the zero line and in a downtrend, forming a bearish divergence. As of this writing, this indicator stands at -0.10.

The CMF indicator measures how money flows into and out of an asset to gauge buying and selling pressure. When its value is negative while an asset’s price climbs, a bearish divergence emerges. 

This trend indicates that the upward price movement is not supported by strong buying pressure. This suggests a lack of conviction behind the Pi token rally and hints at a potential pullback.

Moreover, on-chain data reveals that PI continues to be weighed down by negative sentiment, further exacerbating the downward pressure on its price. According to Santiment, this metric stands at -0.45 at press time, with its negative value reflecting the diminished investor sentiment.

The weighted sentiment metric analyzes social media and online platforms to gauge the overall tone (positive or negative) surrounding a cryptocurrency.

When this metric’s value is negative, it signals that overall market sentiment towards the asset is bearish, with negative discussions and outlooks outweighing the positive. 

This highlights PI’s continued struggles, as the lack of investor Optimism continues to stall any significant upward movement.

PI Approaches Key Resistance at $0.65

PI currently trades at $0.63, approaching the resistance formed at $0.65. If demand begins to wane, this uptrend WOULD witness a reversal and could trigger a price decline to $0.57. 

However, if new demand enters the market and PI’s current rally receives support, it could break above the $0.65 resistance and climb toward $0.72.