Market indicators signal another crash for Pi Network prices.

The native Token of PI Network, PI, has been maintaining a sideways trend after falling to a new all-time low of 0.1842 USD on September 22.

Since that time, the price of PI has fluctuated within a narrow range, finding support at 0.2565 USD and facing resistance at 0.2917 USD. In the context of a broader market under downward pressure, PI is likely to return to lower price levels.

Weak momentum puts pressure on PI

The Average True Range index (ATR) of PI is trending down, reflecting a weakening in the momentum of investors in the spot market. The indicators from PI's one-day chart show that this index has continuously declined since the sideways trend began on September 23, down to 0.0234 at the time of publication.

Average True Range index of PI | Source: TradingViewATR measures the price volatility over a certain period. When this index tends to fall, it often indicates that price fluctuations are narrowing and overall momentum is weakening.

This decline highlights the gradual decrease in participation of investors in the spot markets, while also indicating a lack of new capital flow into the token, increasing the likelihood of a support break at the level of 0.2565 USD in the near future.

Furthermore, PI is currently trading below the 20-day exponential moving average (EMA), further reinforcing the bearish outlook. At the time of writing, this important EMA is creating dynamic resistance above the price of PI at the level of 0.3185 USD.

Pi price chart | Source: TradingViewThe 20-day EMA measures the average price of an asset over the previous 20 trading days, with a higher weight given to recent prices. When the price falls below this level, sellers are in control, and market momentum shifts towards a decline.

This shows that PI is struggling to attract upward momentum and may continue to maintain a sideways trend, or even face new downward pressure if market sentiment does not improve.

The risk of fall continues to increase

With weakened trading momentum, the price action of PI seems increasingly vulnerable to the possibility of another breakdown. This currency may fall below the support level of 0.2565 USD and return to its all-time low.

PI Price Analysis | Source: TradingViewConversely, if market sentiment improves, PI may attempt to break through resistance at 0.2919 USD. A breakout above this level could mark the beginning of a recovery effort, pushing PI's price above its 20-day EMA.

Mr. Giáo