Pi Network Plunges 27% as AI Partnership News Fails to Stem Technical Breakdown

Market Structure Shifts Lower

• PI squealed 27% in a week, returning to the point where it was a few months ago, in spite of big AI partnership announcements
• Technical indicators show oversold across different timeframes, but selling pressure still remains
• Critical support at $0.23 is very weak, hanging by a thread due to bears prevailing in the order flow

The price movements of Pi Network this week have been very dramatic, as PI had to cut off 27% of its price to reach the closing price of $0.253 in spite of the OpenMind AI partnership news. The collaboration, which is a plan to utilize the 350,000 of Pi’s nodes in decentralized AI computations, co uld not avert the technical breakdown that saw the price fall below several support levels. The most important problem that traders have to deal with is whether the $0.23 mark is strong enough to resist. Alternatively, are we going through the initial stage of a bigger correction, which news catalysts are not able to affect?

RSI Momentum Signals Exhaustion

With the RSI index located at 59.39 on the daily timeframe, it comes out as a deceptive neutral reading hiding the actual weakness. Even though it is not considered oversold at the moment, the momentum oscillator’s inability to go under 30 for this week’s 27% dive indicates that the sellers are still in control without having to extreme the market. This difference in price action and RSI is the usual indication of future discomfort.

In the crypto markets, it is quite common for the similar RSI configurations to lead to the emergence of gains, especially at times when the positive fundamentals like the OpenMind investment news do not trigger any substantial correction. For swing traders, the combination of this neutral RSI reading with the ongoing selling pressure suggests that if any counterattack occurs, it would be wise to take precautionary measures until the price permanently returns to the weekly opening at $0.347.

ADX Reveals Trending Conditions Take Hold

The ADX measurement indicates that we are under a strong trend condition with a level at 53.36, unfortunately, this is directed to the bears. It is not a slow descent; it is a resolute action by the means of which each jump is being sold indiscriminately. The fact that the price of PI is technically wrecked, even though the AI partnership put a feather in the cap, it still fell, shows how strong this downtrend is.

The high ADX suggests that in the current conditions the range-trading strategies will be chopped up. Day traders need to be more versatile with the market trend and turn to continuation patterns rather than mean reversion plays instead of trading in a range. The situation where even good news could hardly weaken the trend confirms the assumption that the least resistance way still is lower until ADX decreases to below 25 again.

EMA Structure Confirms Bearish Alignment

Price action through the EMA ribbons illustrates a bleak scenario. At present, PI is being traded at $0.253 while it finds itself trapped underneath the 10-day ($0.233), 20-day ($0.230), and most importantly, the 50-day EMA at $0.238. The reverse monthly EMA results tell a much worse tale – the coin has lost 38% in a month, which is why all moving averages are now acting as resistance.

Just proving his point, the 50-day EMA rejected the price three times this week even if Pi Network Ventures has announced that it is investing in a strategic AI development. This is a classic example of how technical destruction dominates fundamental seasonal weaknesses in bears. Where the price used to find support at $0.238 is now the resistance the bulls should break on considerable volume (that is, if they want to) in order to even think about reversing the downtrend.

Critical Zones Define the Battlefield

The near-term resistance zone is$0.261 to the $0.294 weekly high where trapped longs from the previous week breakdown are expected to liquidate any relief bounce. Even as the news of OpenMind partnership broke confirming the sellers’ assertion on the positive narrative the zone rejected advances. The fact that they have been touched many times without breaking through usually leads to acceptance on lower levels.

The support structure appears very weak. The only level seemingly demonstrating any buying support at the moment is the $0.230 which exists purely as the psychological round figure. Otherwise, the next significant destination is the monthly low at $0.153 which is 40% lower than the present value. Not having any relevant support level between these two makes the matter more dangerous.

The market structure remains a signal of weakness until prices are established above $0.261 on any try to bounce. The absence of AI-associated drivers unable to create even a slight price growth implies that the potential selling of institutions might be taking place on the back of the good press.

Trading the Technical Reality

Despite the necessity of faith, bulls have to close above $0.261 with the confirming volume to nullify the bearish structure and then aim for $0.294 while relying on the AI ecosystem development to continue the buying pressure. Unless these levels are reinstated, any partnership announcement will seem only like a sound in a technical downtrend.

The bearish scenario speeds up when Price decreases to $0.230 on a daily close- the situation would be such particularly this would be the trigger for the stop-loss cascades that aim for the $0.153 level of course, the reason is that the nervous holders who had bought that AI news give in touchstone finally. Volume profiles show until that monthly low the limited buying interest, hence, the intermediate supports are unreliable.

As per the ADX trend strength and the complete EMA resistance overhead, the most likely path is for PI to grind down towards $0.20 while showing occasional relief bounces that fail at the declining resistance. Temporary rallies due to news should be sold until the technical structure gets corrected.