- Pi Network trades down by 4% on Friday despite the broader market recovery.
- On-chain data from PiScan shows large transfers signaling increased whale activity.
- The technical outlook suggests a bearish viewpoint and warns of a potential drop to the $0.66 level.
Pi Network (PI) declines by nearly 4% on Friday, trading at $0.79 at press time. The technical outlook suggests a downward move ahead as the short-term recovery concludes with a trendline breakdown. Adding heat to the drop, rumors of the Pi network core team allegedly selling PI coins to fund the recently announced $100 million startup venture at Consensus 2025.
Pi Network risks $0.66 retest amid trendline breakdown chances
Pi Network sharply reversed from $1.67 on May 12 to $0.66 on May 17 as the optimism ahead of the Consensus 2025 event faded. The event held by Coindesk between May 14 and May 16 invited Pi Network’s founder, Dr Nicolas Kokkalis, who failed to boost the investors sentiment despite the announcement of a $100 million venture for startups. However, with the market recovery, a short-term risk-on sentiment surged the altcoin to $0.80 on Thursday, resulting in a minor support trendline in the 4-hour chart (see below).
Failing to hold the sentiments, the PI coin price falls on Friday, risking the short-term support trendline breakdown. Adding cushion to the declining price action, the sideways moving 200-period Exponential Moving Average (EMA) at $0.78 aligns with the trendline.
Despite multiple support elements, momentum indicators trigger a sell signal for Pi. The Relative Strength Index (RSI) at 48 drops below the midline, reflecting a loss in buying pressure. Investors must remain cautious as the RSI remains near the midline, suggesting a lack of momentum.
The Moving Average Convergence/Divergence (MACD) crossing below its signal line marks a bearish crossover. As the MACD line (blue) and signal line (red) face headwinds with the declining prices, a reversal below the central line will trigger a sell signal.
The trendline breakdown might extend the decline towards the previous swing lows at $0.66 and $0.57.
PI/USDT 4-hour price chart. Source: Tradingview
On the flip side, a bounce back from the 200-period EMA (blue) could propel Pi Network back to $0.84.
Whale deposits Pi coins worth $1.11 million to Gate.io
Amid the declining Pi Network prices, Pi Scan data shows a whale turning insecure and transferring the tokens to the Gate.io exchange. The on-chain data shows the whale wallet “GASIC7…3WVDBN” received 2,000,001 Pi from Pi Foundation 4 years ago.
PiScan data
Over the last three weeks, the wallet has transferred two batches of 707,667.51 PI coins to a secondary wallet “GBC65D…LKOULB.” The first batch, deposited on Gate.io 21 days ago, was worth $556,489.15, and the second batch, deposited a day ago, was worth $557,266.8, totaling $1.11 million.
PiScan data
The outflows come amid accusations that the Pi network’s core team is selling part of their holdings. Pi didn’t immediately respond to FXStreet’s request for comment about the matter.
(This story was corrected on May 23 at 10:57 GMT to say that a whale deposited Pi coins worth $1.11 million to Gate.io, not $1.41 million.)
