The technical indicators show that Pi Network may experience a big dump again, with the 0.2565 USD support being precarious.

The price of Pi Network (PI) is currently in a dangerous sideways consolidation phase after experiencing a historic low at the end of September. Technical analysis shows that several key indicators have turned red, including a continuous decline in ATR, the formation of effective resistance at the 20-day EMA, and shrinking volume, all of which suggest that a new round of falls may be imminent. If the key support level of $0.2565 is broken, the price of PI may once again test the historic low of $0.1842, and investors should closely monitor this dangerous signal.

Pi Network coin price is trapped in a dangerous Sideways, Technical Analysis indicators have fully turned bearish

(Source: Trading View)

Since hitting a historical low of $0.1842 on September 22, the native token of Pi Network, PI, has been struggling within a narrow sideways channel, with the upper boundary at the resistance level of $0.2917 and the lower boundary at the support level of $0.2565. This sideways consolidation is typically viewed as a market decision phase, and the current technical indicator combination shows that sellers are gradually taking control.

The Average True Range (ATR) is an important indicator of market volatility. The ATR of PI has been steadily declining since the sideways consolidation began on September 23, and as of the time of writing, it has dropped to 0.0234, hitting a recent low.

The continuous decline of ATR reflects two key market signals:

Trader participation has significantly decreased: Investor interest in PI is waning, and new capital inflow is scarce.

Volatility narrowing: This situation is often a “calm period” before significant fluctuations in the cryptocurrency market, and the current technical analysis leans towards a downward trend.

Market analysts point out that a decline in ATR, in the absence of positive catalysts, typically signals that prices will break through in the direction of the prevailing trend, which is clearly downward for PI.

20-day EMA forms effective resistance: Sellers control the situation

(Source: Trading View)

The current trading price of PI is solidly below the 20-day Exponential Moving Average (EMA), which is a key technical indicator located at $0.3185, forming a dynamic resistance.

The 20-day EMA is an important indicator of short-term trends. When the price continues to trade below this moving average, it indicates:

Sellers control the market: Selling pressure dominates in the short term.

Lack of Upside Momentum: Any rebound may encounter resistance when approaching or reaching this moving average.

Trend Confirmation: The downward trend is confirmed by Technical Analysis.

It is noteworthy that PI has attempted multiple times to break through this moving average in the past two weeks, but all have ended in failure, further reinforcing the effectiveness of this technical resistance.

Key support level 0.2565 USD facing test

(Source: Trading View)

The current price structure of PI shows that the support level of $0.2565 is crucial. This level has been tested multiple times since September 23 but has not been breached, forming a short-term bottom. However, as technical indicators turn bearish, this support level is facing increasing pressure.

Technical analysts predict that if PI falls below the support level of 0.2565 USD, it may trigger a new wave of selling, and the price could swiftly retreat to the historical low of 0.1842 USD established on September 22. In the worst-case scenario, if market sentiment deteriorates further, PI could even set a new historical low.

Potential Reversal Signals: Key Levels Investors Should Follow

Although the current technical analysis is leaning bearish, investors should still follow potential reversal signals. If PI can break through the resistance level of $0.2919 and hold above that level, it may indicate a shift in the short-term trend.

More importantly, if the PI can regain the 20-day EMA (0.3185 USD), it will be a stronger bullish signal that could trigger a larger-scale rebound.