The Pi Network Foundation's dumping has triggered panic, will PI challenge a new low of $0.2372?

Pi Network (PI) is currently facing strong downward pressure, with prices continuing to weaken. Despite the overall Crypto Assets market gradually recovering, PI is falling against the trend, and investor sentiment has turned pessimistic. With the balance of wallets on Centralized Exchanges surging and the Pi Foundation conducting large-scale dumping, the market generally expects that PI may set a new historical low.

1. The dumping trend continues, CEX Wallet balances have soared significantly

According to PiScan data, in the past 24 hours, the balance of PI tokens in Centralized Exchange (CEX) wallets has increased by approximately 1.7 million coins, with a total exceeding 401 million coins, accounting for 5.16% of the circulating supply. This phenomenon typically indicates that investors are transferring tokens to the exchange in preparation for selling, with dumping pressure significantly rising.

Among them, Gate Centralized Exchange has become the largest PI holding exchange with over 193 million coins in custody. A large amount of capital is flowing into CEX, reflecting that market participants generally tend to take profits or stop losses.

2. The Pi Foundation’s dumping action has triggered a crisis of confidence

(Source: PiScan)

In this wave of dumping, the core team of the Pi Foundation sold 2.53 million PI tokens in the past 24 hours. This move not only increased market supply but also further weakened investors’ confidence in the project. When the team chooses to reduce their holdings during a price fall, it is often seen as a lack of confidence in future market conditions, leading to heightened risk aversion and continued selling pressure.

3. Technical weakness, PI is expected to explore new lows again

(Source: Trading View)

As of Monday’s press release, the PI Network price has fallen by about 2%, failing to break through the S1 pivot point of 0.3642 USD, which has turned from support to resistance. The short-term target points to the historical low of 0.3220 USD set last Friday, just a step away from the S2 pivot point of 0.3191 USD.

If the price further falls below the S2 level, the correction may extend to the S3 support at 0.2372 USD. In terms of technical indicators, the MACD daily chart continues to release sell signals, with the red histogram growing above the zero line, and the MACD line crossing below the signal line. The RSI index is currently at 25, remaining in the oversold region for a long time, indicating that the selling pressure has not yet eased.

4. Market Outlook: If PI cannot recover key support, it is likely to continue searching for the bottom

If PI wants to reverse the downturn, it must re-establish a stable position at the key level of 0.4000 USD. This price point was once an important support, but has now turned into a major resistance. Only by effectively reclaiming this range can it hope to attract buying interest again and drive a short-term rebound.

However, under the dual pressure of selling pressure and insufficient market confidence, PI Network may continue to be under pressure in the short term, and the risk of hitting a new historical low still exists. Investors should cautiously pay attention to market dynamics and strictly control their risk exposure.

Conclusion

Pi Network has recently encountered multiple negative factors, with dumping pressure and market pessimism rising simultaneously. Unless it can quickly regain lost ground, PI is likely to face the fate of further falling to new lows. It is recommended that investors closely monitor exchange dynamics and changes in technical indicators, and carefully assess their own holding strategies.