Pi Coin Price Faces Bearish Breakout As 61M Tokens Move to Exchanges, Sell-Off to $0.26 Ahead?

Pi Coin price might be facing a 40% crash as it continues lagging behind most altcoins that have been making significant attempts to gain in the last week. The bearish pressure that has been dragging the price down might intensify for the remainder of the month after PI broke out downwards from a bearish pattern amid rising CEX balances that show traders are getting ready to sell. Pi Network trades at $0.448 today, July 16, with a 0.8% decline in 24 hours.

Pi Coin Price Faces Downside Risk Amid Bearish Breakout

The Pi Network token has been performing poorly in the last month, considering that it is down by 25% during this period, which is a contrasting performance from other altcoins. Due to the ongoing losses, a bearish descending triangle pattern is forming, with a downward breakout that signals that a 40% crash might happen.

The 40% crash that is looming with this pattern is from the difference in height between the triangle’s upper resistance of $0.74 and the support that lies at $0.44. This suggests that if bears confirm a close below the support level with two consecutive candles, Pi Coin price may plunge to $0.26 and create a new all-time low.

The main reason why bears have had the upper hand despite long term Pi Coin price forecast still bullish in the last month is because of its persistent movement below the 50-day SMA level. Its failure to move above this level has left the price in the control of sellers as buyers remain on the sidelines due to a lack of any bullish confirmation.

However, an MACD bullish divergence as identified in a recent CoinGape analysis might aid a Pi Network price recovery as long as PI holds the support level of $0.409. The analysis notes that if this signal holds and bulls defend this support, the Pi Coin price might break out to the psychological resistance level of $1.

Pi Coin Exchange Deposits Jump in last 24 Hours

A lot of PI Network tokens are moving to spot crypto exchanges, revealing the intention of the current holders to sell, which may accelerate the downtrend from the bearish descending triangle pattern. Data from PiScan shows that in the last 24 hours, 5.9 million PI has been transferred to exchanges, with the netflows during this time standing at more than 1.8 million.

At the same time, concerns are rising because of the transfer of 5 million tokens from a wallet associated with the PI Foundation. If these tokens are also moving to exchanges and create a panic that causes other retail traders to also start selling, the 40% fall for Pi Coin price, just as the bearish chart pattern suggests, might happen.

Nevertheless, the bearish effect of these exchange inflows could be impeded by the recent action by a mystery wallet that bought millions in Pi Coins, which has caused speculation about whether the Pi Foundation is buying back tokens to support a price recovery.

To sum up, the Pi Coin price is slipping below a major support level, confirming that bears are in control, and a fall below the previous all-time low might happen soon. This decline will possibly continue as the amount of tokens that are moving to exchanges increases significantly.