Pi Network (PI) Signals Indicate a Possible Significant Correction Ahead

Pi Network (PI) has emerged as one of the most talked-about altcoins of 2025, recently witnessing a staggering price increase of over 200% within just a week, almost reaching the $3 mark. Despite this impressive uptick, recent technical indicators imply that the uptrend is beginning to lose steam.

Current Market Dynamics: DMI and RSI Analysis

The Directional Movement Index (DMI) indicates that while buyers maintain control, the diminishing difference between the +DI and -DI suggests a weakening bullish force. Moreover, the Relative Strength Index (RSI) has significantly decreased from overbought territory, which may foreshadow a reversal in trend that could jeopardize its bullish outlook.

DMI Metrics Suggest Caution

Currently, the ADX stands at 37.6, having surged dramatically from 9 to 62.7 in the last day. The ADX measures the strength of a trend but does not indicate its direction. An ADX value over 25 points to a robust trend, while below 20 suggests a weaker market.

As of now, +DI sits at 23.6, down from 57 yesterday, reflecting reduced bullish momentum. In contrast, -DI has increased to 20 from a mere 1, signifying rising bearish sentiment. Although +DI continues to be above -DI, hinting at an ongoing uptrend, the narrowing gap signals that the bullish phase may be losing traction. A further decline in +DI crossing below -DI could indicate a foreboding trend reversal.

RSI Reports a Shift to Neutral

PI's RSI has relaxed to 52.2 after soaring to a peak of 95 just a day prior and remaining above 70 for an extended period. As a momentum oscillator, the RSI evaluates the speed and fluctuation of price changes, with values exceeding 70 reflecting overbought conditions that may incite a price adjustment, while values below 30 suggest an overselling situation.

Currently resting in the neutral zone, PI's drop from overbought territories indicates a downturn in buying pressure and may point towards a consolidation phase. The steep pullback suggests profit-taking activity, heightening the chances for a short-term price correction.

Potential for Significant Price Correction

Although PI's Exponential Moving Average (EMA) lines still display a bullish trend, with short-term lines above long-term ones, recent activity suggests a potential loss of momentum, supported by the latest DMI and RSI data. The coin remains among the most hyped in the market, frequently grabbing headlines. Just recently, claims of wash trading within Pi Network have emerged, igniting discussions. Additionally, the acceptance of PI coins by businesses in Florida previously spurred its price surge.

Given the waning buying pressure and rising bearish sentiment, a shift within the once-positive market perspective is becoming evident. Should the EMA lines continue to converge, it might signal an impending trend reversal, jeopardizing PI's bullish outlook.

If PI manages to reinforce its uptrend, it could rise to test levels above $3, possibly reaching $3.5. Conversely, if bearish conditions persist, potential support could be tested at $1.69. If this threshold is breached, declines to $1.42 may follow, and should that support falter, PI may drop as low as $0.80, indicating a potential 68% correction.