Pi Network Tumbles 71% From Yearly Peak as KYC Overhaul and Legal Storm Converge
Market Structure Shifts Lower
- Pi Network dropped 7.2% this week to $0.204, following up on its brutal 71% downturn from annual peaks
- Rejection by Core Team to validate external price speculation keeps traders fragile near key support
- ADX of 19.27 implies ranging action to persist as the community faces lawsuit liabilities of $10m
The price action of Pi Network is a tale of accumulation breakdown, as the cryptocurrency fell by 7.2% over the past week to close at $0.204. This was the seventh consecutive week in which the coin closed lower. Weekly losses also translated into monthly losses of 16.6% and a market value of $1.2 billion. The demise of the market cap was triggered by a 71% fall from the all-time high in March. These losses were exacerbated as the Core Team made the decision to go public and disavow any price estimates made by third parties, effectively eliminating much of the speculation that supported the overvaluation.
| Metric | Value |
|---|---|
| Asset | PI (PI) |
| Current Price | $0.20 |
| Weekly Performance | -9.61% |
| Monthly Performance | -7.23% |
| RSI (Relative Strength Index) | 34.2 |
| ADX (Average Directional Index) | 19.3 |
| MACD (MACD Level) | -0.01 |
| CCI (Commodity Channel Index, 20-period) | -116.36 |
Momentum Exhaustion Signals Capitulation Phase Complete
The Relative Strength Index is currently at 34.21 on the daily chart, and this is the first time it has dived so deeply into oversold territory since the project was launched. This indicates a scenario where weak investors leave the market, but since the Core Team doesn’t use pricing for their open-source project, the usual rebound in oversold conditions may not apply.
What is interesting to note is the behavior of the RSI during the announcement cascade it barely moved from 39 to 34 indicating the fact that the news of a 42% monthly meltdown had already been factored in by the sellers being well in place. So for swing traders, this lack of momentum and the exhaustion in the AI trading system means that any relief bounce will find immediate overhead supplies from longs trapped and looking to get out.
Weak ADX at 19.27 Keeps Range Traders in Control
With the ADX at 19.27, it still supports virtually non-existent trends, reinforcing the fact that Pi Network is simply range-bound. That low reading remains in place even after the recent drop, suggesting that even the bears are not overly confident as trading activity wanes due to regulatory unknowns.
In simple terms, this low-trend environment is conducive to range-bound chop between $0.20 and $0.24 until the lawsuit is settled or KYC comes online for Tier 1 nations. So, day traders will want to adjust expectations and strategy accordingly, focusing on quick scalps rather than position trades as the ADX indicates that neither the bulls nor the bears have the strength to maintain momentum under present circumstances.
All Moving Averages Stack as Resistance After December Breakdown
When looking at EMA, the price appears to be doing rather badly. It turns out that Pi is trading below each and every moving average ranging from 10-day ($0.215) to the 200-day ($0.427) Indicators show the 50-day EMA ($0.238) as the pivot point for 3n rally efforts that failed before the Core Team’s December announcement quashed any hopes of recovery.
Even if buyers somehow regain control, particularly a heavily oversold bear market, the rebound is equally unpredictable – due to the stock’s 88% collapse since October 2024. Only a spectacular buyout rumor or the best quarter in company history could trigger an upswing.
$0.20 Becomes Final Line in Sand as Support Architecture Crumbles
There is strong resistance between the $0.241 monthly pivot and the 50-day EMA of $0.238 pre-announcement trading candle highs. Any attempt to lift price through this resistance draws more supply as those relatively recent buyers who bought the Know Your Customer (KYC) news are still caught long.
Bulls have been defending the psychological level of $0.20 more than expected when realizing six separate trials this month – but you can see there are some cracks as the volume gets lower with each bounce. At a weekly low of $0.204, this is the absolute bottom where any breakdown would trigger upside stop-losses going so far back to the mainnet of the project.
Bears Target Complete Washout Below $0.20 Support
If the support at $0.20 is broken and this occurs with strong trading volume, it could create a feedback loop that pushes the price down to $0.16. This would be a dangerous situation for investors who are still holding their positions in the hope of a trend reversal after the coin has already lost 71% of its value.
Due to various factors including legal overhang, technological transition risks, and the Core Team’s antagonistic stance toward price discovery, it is likely that Pi Network will remain stuck between $0.20-$0.24 until the $10 million lawsuit reaches a resolution and gives directional clarity.
