Pi Network Price Prediction as 3 Bearish Signals Emerge Ahead of Next Week’s Ecosystem Summit

Pi Network (PI) price is down 1.45% today, November 13, to trade at $0.0689 at the time of writing. The drop mirrors a downtrend across the broader cryptocurrency market where Bitcoin (BTC) has dropped below $70,000 and Ethereum (ETH) is also trading below $2,000.

PI’s drop comes four days before the first ever summit for the Pi Network ecosystem commences on November 17. Normally, such events help support a gain in price. However, three bearish signals warn that the upside could be limited.

Crypto Market Sentiment Drops to “Extreme” Fear Ahead of PI Summit

One of the bearish signals emerging ahead of the Pi Network summit is the “Extreme Fear” sentiment that has gripped the market. The Fear and Greed Index has dropped to 20, with this being the lowest reading in one month as crypto prices crash.

The “Extreme Fear” sentiment means that many traders are staying away from the market or selling out of fear that crypto prices will continue crashing.

This sentiment is a bearish signal for the future Pi Network price outlook as the team heads up to the summit next week. With fewer buyers in the market, it limits the upside that PI price can make even with the summit approaching.

Moreover, even if the price begins to rebound now as traders begin to price in any bullish development that might come from the summit, they will most likely sell after a brief rally to take profits out of fear that any uptrend is not sustainable because the broader market is in turmoil.

Sharpe Ratio is Sinking as Pi Network Price Remains in Range Lows

As CoinGape reported, Pi Network price recently crashed to an all-time low of $0.0625 on November 9. PI has since gained by 10% from this record low, but remains 97% below its all-time high of $2.98.

The declining price has pushed the Sharpe ratio to the negative side per data from Blockworks. This ratio measures the risk adjusted return of a Pi holder.

The 90-day average Sharpe ratio has dropped to -2, while the one-year average has fallen to -1.4, to show that PI is performing worse than a risk-free asset like government bonds.

PI is a risk asset, which means it has to offer a return that is worth the risk of holding it. With these holders not seeing any returns, it increases their chances of selling to minimize the risk.

That selling might happen if there are any slight gains from the summit, and the holders use these gains to dump their holdings.

Technical Indicators are also Leaning Bearish

Technical indicators on the one-day Pi Network price chart are also printing a bearish signal ahead of the November 17-19 ecosystem summit.

The Relative Strength Index (RSI) is at 34. The RSI had earlier dropped to an oversold region at 30, but remains in the bearish territory.

This RSI reading suggests that the momentum around Pi Network price remains bearish even with the upcoming summit where the team has promised to announce new features and developments.

The on-balance volume (OBV) has also dropped to -3.28 billion. What this negative OBV reading shows is that selling pressure is exceeding the buying pressure, and there is a very small chance that Pi Network price will rebound in the near term.

These two indicators could shift with the upcoming summit but Pi Network price will only confirm a bullish reversal if the RSI and OBV lines make higher highs.

Key Levels to Watch in Pi Network Price Ahead of November 17-19 Ecosystem Summit

The one day chart for Pi Network price shows that the downtrend that started in September is still in play. As the downtrend progresses, the recently formed all-time low of $0.0622 is the first support to watch. This low also coincides with the lower trendline of a descending channel.

Buyers usually wait for the price to retest all-time lows before they can enter the market but if it does not hold, PI price could drop to the 123.6% Fib of $0.053.

However, the November 17-19 summit might offer some relief, especially if major developments are announced. In this case, PI price could move to the middle Bollinger band at $0.0743 and then test the obstacle at the 61.8% Fib of $0.076.

Pi Network price needs to create a higher high above $0.084 to confirm a bullish reversal.

Still, even if the summit supports the bullish case of a move to $0.084, the bearish conditions in the broader crypto market could result in weak buying pressure.