Pi Network price outlook: Pi faces additional downside risks amid collapse of key support level

Pi Network held firm at $0.1700 on Friday after losing 5% on the previous day.
More than two million PI tokens were deposited on centralized trading platforms in the last 24 hours amid the second phase of the transition process, leading to a drop in the Pi Network price.
The PI token faces the risk of an extended decline to $0.1556 amid a bearish technical picture.

The Pi network token (PI) is trading near $0.1700 as of the time of writing this report on Friday, after it fell by more than 5% on the previous day. Total deposits on centralized exchanges (CEXs) exceeded two million PI tokens in the past 24 hours, indicating profit-taking by investors amid the second round of mainnet network transfers. Technical forecasts for the PI token point to a bearish direction after a daily close below the $0.1736 support level, with the next support level at $0.1556.

- Declining investor confidence drives the mainnet data transfer to centralized exchanges.
Pi Network is facing heavy supply pressure as digital asset inflows into centralized exchanges increase as a result of the second wave of transfers from the testnet to the mainnet. PiScan data shows that centralized exchanges recorded inflows of 2.16 million PI tokens over the past 24 hours, which aligns with the intense selling seen on Thursday, leading to a 5% drop in the spot market. The rise in deposits on centralized exchanges, as more Pi Network testnet users move to the mainnet, reflects waning investor confidence in the project, resulting in immediate profit-taking.

Pi Network centralized exchange wallet balances. Source: PiScan.

Pi Network is exposed to the risk of a sharper correction
The Pi Network index showed a slight rebound during the day above $0.1700 at the time of writing this report on Friday, after a 5% drop on the previous day. The short-term trend still leans slightly downward, as the price has stabilized below the declining (EMAs) for 50, 100, and 200 days, which are now trending downward, weighing negatively on any intraday rebounds.

On the downside, Thursday’s close below $0.1736 revealed a clear path toward the lowest level recorded on February 23 at $0.1556, which is considered the next important level. Continued losses at $0.1556 would extend the prevailing downtrend toward the low recorded on February 11 at $0.1310.

The (MACD) moving average convergence/divergence line sits slightly below the signal line on the daily chart, with a mildly negative histogram, reinforcing a weak bearish trend rather than impulsive selling. At the same time, the (RSI) remains near the 42 level below the midline, indicating ongoing but moderate bearish momentum.

Technical analysis of the (PI/USD) digital currency pair
Daily PI/USD price chart.

Initial resistance is at the 50-day exponential moving average at $0.1851, near the 100-day exponential moving average at $0.1942, both of which maintain a broader bearish trend. A daily close above $0.1942 would support a recovery toward the highest level recorded on March 7 at $0.2396.
$PI