The Pi Network is experiencing significant price pressure, with its value hovering near $0.20 as of the latest reports. Despite prior momentum seen in October and November, the recent performance of the token has raised concerns about its future trajectory. The broader cryptocurrency market has seen a recovery from earlier losses, yet PI seems to be losing ground.
In recent weeks, PI managed to rally from approximately $0.23 to over $0.28, defying market trends. However, this uptick was short-lived, and the asset is now at risk of slipping below the critical $0.20 threshold. Analysis from ChatGPT indicates that this level is a significant support point, and further declines could lead to a retest of the early October all-time low (ATL) of $0.172.
If PI breaks below the $0.20 mark, the next support levels are between $0.18 and $0.19. A fall through this range could open the door to even lower valuations, potentially setting a new ATL. ChatGPT”s analysis characterizes the current market sentiment around PI as “short-term bearish,” especially given the decline in trading volume, which points to increased seller dominance and reduced demand.
The AI model further noted that low liquidity and dwindling volume often result in heightened volatility as assets approach their all-time lows. While there are some positive signals in the momentum indicators, they are not yet indicative of a reversal in trend.
The outlook for the coming week remains grim, with ChatGPT suggesting that the worst-case scenario could see the price plummet to $0.16 if the support at $0.18 fails. This prediction coincides with the scheduled unlocking of over 180 million tokens in the next month, which translates to approximately 6 million tokens becoming available daily. This influx could exacerbate the selling pressure.
Conversely, a bullish scenario would involve a breakout above $0.21, leading to a potential rise towards $0.25. However, this outcome is considered unlikely by the AI model. The prevailing expectation is for PI to move sideways within the $0.18 to $0.21 range in the near future.
In conclusion, the situation for Pi Network is critical. With its price hovering just above the all-time low, the ability of the bulls to maintain support at crucial levels will be pivotal in determining whether PI stabilizes or enters a new phase of bearish trading.
