Pi Coin, why is it falling despite the upgrade... The real reason

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Despite the positive news of a mainnet upgrade, Pi Coin (PI) is continuing its downward trend, hampered by sluggish demand, according to an analysis.

According to investment specialized media FXStreet on April 14 (local time), Pi Network is showing further weakness amid a recent downtrend, with overall downward pressure persisting. The Pi Core Team announced that they upgraded the mainnet to Stellar Protocol version 21, but the market price did not show a clear reaction.

This upgrade is a step towards the future introduction of version 22, aiming to expand utility by supporting smart contract functionality. However, in the current market, such technological advancements are not translating into demand and thus are not acting as a driving force for price increases.

On-chain data also shows some signs of easing selling pressure. According to PiScan, approximately 619,617 PI were net outflowed from exchanges in the last 24 hours, reversing from the previous day's inflow of 1.92 million PI. While this suggests that a decrease in circulating supply could reduce downward pressure, it has not yet led to a price rebound.

Technically, a bearish structure is still maintained. Pi Coin is trading below the 50-day exponential moving average of $0.1794, showing a clear downward bias. The short-term support level is around $0.1633, coinciding with the downtrend line, and a break below it could lead to a further decline to $0.1556. The Relative Strength Index (RSI) is at 39, approaching the oversold zone, and the Moving Average Convergence Divergence (MACD) also maintains a bearish trend.

On the upside, the 50-day moving average of $0.1794 acts as the primary resistance level. A breakthrough of this level could open up room for an ascent to the 100-day moving average around $0.1893. However, for now, the likelihood of continuing the downtrend is weighted more heavily than a technical rebound.

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