Direct Hit from Middle East Risk… Pi Network Support Line Collapses

▲ Pi (PI)/ChatGPT generated image ©

Pi Network's price, having broken below a key support level, is facing further downward pressure, coupled with Middle East risks.

According to investment media FXStreet on April 20 (local time), Pi Network (PI) has fallen below its 50-day Exponential Moving Average (EMA) of $0.178 and is trading at $0.171. It is analyzed that the upward momentum has weakened after failing to break above this support level and closing below it the previous day.

Geopolitical tensions are once again acting as a risk factor across the market. As the US-Iran conflict over the Strait of Hormuz reignites, risk asset preference has shrunk, leading to a synchronized bearish trend for major cryptocurrencies, including Pi Network.

Technically, downward pressure is dominant. With the price correcting more than 4.5% over the weekend, after failing to break the 100-day EMA of $0.187 and even breaking below the 50-day EMA, the possibility of further decline has opened up. If this trend continues, the next support level is suggested to be in the $0.153 range.

Momentum indicators are also reinforcing bearish signals. The Relative Strength Index (RSI) is at 46, falling below the neutral line of 50, indicating a slowdown in buying pressure, and the Moving Average Convergence Divergence (MACD) is also showing a weakening upward momentum. This suggests that a corrective trend is more likely to continue in the short term than a rebound.

However, a rebound scenario is not entirely ruled out. If the price recovers the 50-day EMA of $0.178, there is room for an ascent to the 100-day EMA of $0.187, but in the current market environment, geopolitical variables and the recovery of investor sentiment are identified as key factors that will determine the direction.

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