[Analysis] Pi Network drops 60% in a month... Technical rebound signals are 'weak'

Pi Network (PI) is struggling to escape intense selling pressure despite its recent partnership announcement with Telegram. The price of PI has fallen more than 60% over the past 30 days, and technical indicators also suggest a continued downtrend.

According to BeInCrypto on the 28th (local time), the Bollinger Band Trend (BBTrend) indicator has recorded negative values for 12 consecutive days since the 16th. The figure fell to -41 on the 21st and has somewhat recovered but remains negative at -22.34. BBTrend is a trend indicator that indicates strong buying pressure with positive values and selling pressure with negative values centered around 0.

The Relative Strength Index (RSI) is also not supporting a rebound for Pi Network. The RSI for Pi Network fell to 23.8 two days ago and rebounded to 40.45 but still falls below the baseline of 50. RSI is considered overbought above 70 and oversold below 30.

The Exponential Moving Average (EMA) also supports the continuation of the downtrend. The short-term EMA is positioned below the long-term EMA, showing a typical downtrend. If this pattern continues, Pi Network is expected to retest the major support level of $0.718. If this support level collapses, there is also a forecast that further declines to $0.62 cannot be ruled out.

However, the upward trend in RSI and some inflow of bargain buying are raising expectations for a short-term rebound. If the rebound gains momentum, there is an analysis that the resistance level formed at $1.05 could be breached, opening up the potential for a rise to $1.23 to $1.79. On this day, Pi Network is trading at the $0.8 level, down 3.63% from the previous day according to CoinMarketCap.