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GuShiio.com鼔狮智能 Editor:鼔狮
The much-anticipated Pi Network (PI) has finally launched, and has become the largest airdrop event in the history of cryptocurrency, surpassing the previous record of Uniswap. However, despite the huge market enthusiasm in the early days of the launch, its price trend has been extremely volatile. Judging from technical indicators, the market’s enthusiasm for PI is cooling rapidly, and the future trend is still full of uncertainty.
ADX indicator: trend weakens, market confused
Pi Network’s average directional index (ADX) has undergone drastic changes since its launch, rapidly dropping from the initial 60.2 to the current 15. This significant decline indicates that the market has lost its clear trend direction. ADX is an indicator of trend strength. Usually:
ADX below 20 indicates a weak trend or no obvious trend; 20 to 40 indicates that a trend is forming; and over 40 means a strong trend.
The current ADX value is only 15, reflecting that the market is in a state of indecision and lacks clear direction. This low ADX level also suggests that prices may enter a consolidation phase until a new trend gradually emerges.
At the same time, changes in +DI (positive indicator) and -DI (negative indicator) further reveal the dynamics of the market. +DI has dropped from over 60 at launch to 16.3 at present, indicating that buying pressure has weakened significantly; while -DI has risen from 4.2 to 21.6, showing that selling pressure has gradually increased. This shift means that the market sentiment originally dominated by buyers has been controlled by sellers, and future trends still need to be observed.
RSI indicator: from extremely overbought to cautious wait-and-see
Pi Network’s relative strength index (RSI) has also undergone dramatic changes. When it was launched, RSI soared to over 90, indicating that the market was extremely overbought and buying sentiment was high. However, within just a few hours, RSI fell sharply to 25.1, then rebounded slightly, and is currently stable at around 45.2.
RSI is an important tool for measuring price momentum, and its value range is 0 to 100: RSI above 70 is usually considered overbought and may indicate a price correction; RSI below 30 indicates oversold and may indicate a price rebound.
Currently, RSI is at 45.2, which is between neutral and bearish, reflecting the cautious attitude of market sentiment. Although the extreme selling pressure has eased, buying interest remains weak. If RSI can break through 50, it may usher in a wave of bullishness; however, if it falls towards 30 again, it may trigger a new round of selling, leading to further price declines.
Key Support and Resistance Levels: Where Does Price Go?
Downside Risk: Possibility of Breaking $0.71
If the current selling pressure continues, Pi Network is likely to test the key support level of $0.71. This price level is not only where its longest period EMA line is located, but also the last line of defense to maintain the current price range. Once lost, it may accelerate the downward trend and even open up more downside space.
Upside potential: challenge $1.02 and $1.26
On the other hand, if market sentiment reverses and regains bullish momentum, Pi Network may try to break through the $1.02 resistance level. A successful breakthrough of this level will mark the return of buying interest and may push the price further to $1.26, with a potential increase of about 41% from the current level. This will not only end the current bear market phase, but may also attract more investors to enter the market.
Summary: Cautious optimism, wait for market signals
On the whole, although the launch of Pi Network has created history, the market’s enthusiasm for it is fading rapidly. Both ADX and RSI indicators show that the current market lacks a clear trend, the power comparison between buyers and sellers is very different, and the price may enter a shock consolidation stage.
For investors, it is necessary to pay close attention to the $0.71 support level and the $1.02 resistance level in the short term. If the price falls below the support level, you should be alert to the risk of further decline; if it successfully breaks through the resistance level, there may be a rebound opportunity.
No matter how the market changes, please always remember that “investment is risky and you need to be cautious when entering the market.” Only by making rational decisions and controlling positions reasonably can you remain invincible in the volatility.
