The value of Pi Network (PI) IOU has experienced a significant drop, plummeting 42% within the past 24 hours as skepticism grows regarding its scheduled mainnet launch on February 20.
This sharp decline reflects increasing concerns among investors, fueled by persistent speculation that Pi Network may be operating as a pyramid scheme.
These apprehensions have made it challenging for the token to establish credibility, leaving many investors uncertain about its long-term potential.
Escalating Bearish Sentiment
Technical indicators reveal that bearish momentum is intensifying for Pi Network (PI) IOU. The Relative Strength Index (RSI), which recently entered the overbought zone, has now reversed sharply, signaling increased selling pressure.
Although the RSI remains above the neutral 50.0 mark, its sudden downturn underscores the market’s hesitation. Historically, when an asset exits the overbought zone and declines, it often experiences further downward movement.
Compounding concerns, the Chaikin Money Flow (CMF) indicator, which tracks capital inflows and outflows, has been on a downward trajectory since the beginning of the month.
Despite intermittent recoveries, the CMF has struggled to maintain positive momentum, suggesting that capital outflows are outweighing inflows.
These patterns point to a lack of investor confidence, reinforcing fears that the token may continue to face challenges in recovering its lost value.
Key Support Levels and Price Outlook
Currently, PI IOU is trading at $72 after failing to hold the $130 support level, triggering a wave of sell-offs. With selling pressure mounting, analysts caution that the price could face further declines if sentiment surrounding the project does not improve.
The next major support level is at $63—a breach of this level could push the price down to $47, exacerbating investor losses.
On the other hand, if PI manages to sustain its position above $63 and stages a rebound, it could attempt to retest the $130 resistance level.
A successful breakout above $130, turning it into a support level, would invalidate the bearish outlook and pave the way for a potential recovery.
However, given the current market sentiment, such a turnaround remains uncertain unless investor confidence sees a significant boost.
As the mainnet launch date approaches, market participants will closely monitor for signs of stability and increased buy-side interest. Until then, volatility and downside risks remain high for Pi Network’s price trajectory.
