100 million PI issuance in April, the bear sets a target of $0.4

According to the plan, 100 million Pi Network tokens, equivalent to approximately 60 million dollars, will be unlocked in the remaining part of April. This move is said to potentially increase the selling pressure that has been weighing on PI recently, raising concerns that the price could continue to plummet to all-time lows.

Pi faces difficulties amid a bearish sentiment

According to PiScan, 9.5 million tokens ( worth 5.76 million dollars ) will be released today. This is part of the overall schedule, under which more than 1.56 billion PI tokens will be released in the next 12 months.

Unlocking PI Chart | Source: PiScanWith the challenges from the broader market recently, this month's token unlocking may trigger an increase in sell activity, especially as the demand for this altcoin is currently weak.

Meanwhile, technical indicators are showing weakening support. For example, the Balance of Power (BoP) index of PI is gradually decreasing and currently below 0, with a value of -0.75 at the time of writing.

BoP of PI | Source: TradingViewThis indicator measures the buying and selling pressure of an asset. When the index decreases as it is now, it indicates that the sellers are dominating and have a greater influence on price movements compared to the buyers. This confirms the bearish trend in the spot market of PI and the downward pressure continues.

In addition, the Chaikin Money Flow (CMF) indicator is also firmly below the centerline and has maintained this position since the price began to decrease on February 26. Currently, the index is at -0.17, indicating that the selling momentum is still dominant.

CMF of PI | Source: TradingViewThe negative CMF indicator proves that selling pressure is greater than buying pressure, meaning that money is flowing out of assets. This continues to confirm the negative sentiment in the market and the risk that prices could drop even further.

PI may plummet to an all-time low

Currently, PI is trading below the 20-day EMA, with a dynamic resistance level forming above at $0.7.

The 20-day EMA reflects the average price of PI over the last 20 trading sessions, with a higher weight given to more recent price levels. The fact that PI is below this important average threshold indicates that the short-term downtrend is still prevailing.

Thus, the sellers are still in control of the market and assets may continue to face downward pressure. If this trend persists, PI could very well return to the all-time low of 0.4 dollars.

Price analysis of PI | Source: TradingViewConversely, if demand recovers, the bearish hypothesis may be invalidated. In that case, PI could break through the 20-day EMA resistance level and rise to $0.95.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

Minh Anh