Pi Network price continued its strong downward trend today, Dec. 16, moving to its lowest level since October. The token has slumped by double digits from its highest point in November. It may continue falling now that whale selling has stalled and demand has dropped in the past few weeks.
Pi Network Price at Risk as Whale Buying Stalls
The Pi Coin price has been in a strong downward trend, continuing a downward trend that started on November 28 when it peaked at $0.2775. It has been in a strong sell-off from its highest all-time high of nearly $3.
The ongoing Pi crypto crash is happening as whale buying fades. Data compiled by PiScan shows that a prominent whale who has been the most active in accumulating it for months has paused his purchases.
The whale made a tiny purchase of 19,976 coins five days ago. Before that, he was accumulating the tokens continuously, a move that brought his total holdings to 391 million. At the current price, these tokens are valued at over $76 million.
More data shows that the daily volume of the Pi token has waned in the past few months. Data compiled by CMC shows that the volume of Pi tokens stood at over $21 million, a small amount since Pi Network has a fully diluted valuation (FDV) of over $19 billion and a circulation valuation of $1.6 billion.
The falling demand is happening at a time when more Pi tokens are being brought online through its token unlocks. Data shows that the network is set to unlock 111 million tokens this month and 1.22 billion in the next 12 months.
Pi Coin Price Technical Analysis Suggests More Downside
The eight-hour timeframe chart shows that the Pi Coin price has suffered a harsh reversal in the past few weeks, moving from last month’s high of $0.2820 to $0.1960.
It has moved below the important support level at $0.2030, the neckline of the double-top pattern at $0.2820. This is one of the most popular bearish reversal patterns in technical analysis.
The token has dropped below the dynamic resistance of the 50-period Exponential Moving Average (EMA). Also, the Relative Strength Index has dropped to the oversold level of 23, while the MACD indicator remains below the zero line.
PI network priceTherefore, the most likely PI forecast is bearish, with the next key support level to watch being at $0.1530, its lowest level in October, down by 20% from the current level. A drop below that price will point to more downside to $0.100.
On the flip side, a move above the important resistance level at $0.2200 will invalidate the bearish Pi Network price prediction.
Source: https://coingape.com/markets/pi-network-stares-at-a-20-crash-as-whale-buying-pauses-and-demand-dries/
