Pi Network (PI) Could See a Downtrend Below $1 This March

Pi Network (PI) has experienced a downturn of over 19% in the past week, continuing its correction below the $2 mark since March 1. The selling pressure persists, with indicators such as the Directional Movement Index (DMI) and Chaikin Money Flow (CMF) signaling further risks of decline.

EMA lines for PI hint at the possibility of a death cross, which may lead to a more pronounced fall toward $0.95 should critical support levels be breached. However, if the market sentiment changes and buying activity increases, PI may strive to reclaim the $2 level and potentially surge past its previous all-time highs of over $3.

Current Market Dynamics: DMI Shows Sellers Maintain Control

The DMI for PI shows a significant rise in the Average Directional Index (ADX), which has climbed to 34.29 from 8.97 just two days earlier. This notable increase signifies that the current price trend—be it bullish or bearish—is strengthening. As volatility continues, market participants are keenly monitoring if PI will maintain its momentum or if there will be a shift in trend direction.

The ADX provides insights into trend strength on a scale of 0 to 100, where values exceeding 25 indicate a robust trend and those over 50 highlight an extremely strong trend.

Currently, the positive directional index (+DI) sits at 11.37, a decrease from 17.7 two days prior, yet it's recovering from a low of 7.14. This suggests some waning selling pressure, albeit still indicative of bearish conditions. In contrast, the negative directional index (-DI) has risen to 30.57 from 19.5 two days ago, showing some reduction in bearish momentum from the previous peak of 46.6.

Chaikin Money Flow (CMF) at Critical Low Levels

At present, Pi Network's CMF stands at -0.19, dropping sharply from 0.03 just a day earlier. This notable decline reflects a significant shift in capital movement, indicating increased selling pressure. Just hours ago, the CMF hit an all-time low of -0.21, underscoring the severity of recent selling activity.

The CMF measures the volume-weighted flow of money into and out of an asset, ranging from -1 to 1. Positive values suggest buying pressure, while negative values indicate heightened selling influence. With the CMF nearing its historical lows, it implies that sellers are firmly in control, potentially pushing prices lower unless buying interest resurfaces.

Prospects for Pi Network in March

Currently, Pi Network's price oscillates between a critical resistance at $1.51 and a support level at $1.23, with EMA lines reflecting a bearish trend. The looming potential for a death cross could heighten selling pressure if it manifests.

Should PI fail to hold above the $1.23 support, a decline to around $0.95 could occur. Conversely, if PI manages to reverse this trend, an initial test at the $1.51 resistance could open pathways to $2.

A robust rally could propel PI above the $3 mark for the first time, achieving new all-time highs despite recent challenges.