Pi Network, on the brink of major support collapse... Can it overcome the selling pressure?

▲ Pi Network (PI)/ChatGPT generated image

Pi Network (PI) is on the verge of its major support level collapsing, unable to withstand the selling pressure from large volumes of deposits flowing into exchanges.

According to cryptocurrency specialized media FXStreet on April 30 (local time), Pi Network's price is under strong downward pressure due to recent concerns about oversupply. Investors are depositing large amounts of their holdings into exchanges, threatening Pi Network's key support area.

The main factor driving the price decline is the sharp increase in deposit volumes on exchanges. Generally, a large influx of cryptocurrencies into exchanges is interpreted as an indicator that investors' intent to sell has strengthened. Currently, Pi Network's price is fluctuating as buying pressure is not sufficient to absorb the incoming volume.

Technical indicators also point to a downtrend. Key indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest that Pi Network's trend is currently on a downward curve. Experts analyze that if the current support level cannot be maintained, price volatility could increase further.

In the market, there are criticisms that the supply of Pi Network is being released faster than the expansion of its ecosystem. "The current massive selling pressure will be a watershed moment testing market confidence," an FXStreet official stated. Investor anxiety is spreading among individual investors, weakening the momentum for a short-term rebound.

For Pi Network to regain a stable trend in the future, the large-scale deposits must cease, and a new support area must be formed. Currently, there is a lack of positive news to offset the downward pressure, and investors are expected to adopt a more wait-and-see approach. Efficient management of circulating supply and securing practical use cases are expected to be key variables in future price trends.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*