Pi Network Price Prediction: Pi coin once stood above 0.50 USD, has a new round of large-scale Rebound begun?

The price of Pi Network (PI) briefly rose above $0.50 during the Asian session today (22), but then slightly retraced. Although the Crypto Assets market shows a positive trend, Pi coin failed to follow the Bitcoin surge that set new highs in July. The market is focusing on whether this Rebound will mark the beginning of a new round of large-scale Rebound.

The 24-hour trading volume of Pi coin has also soared significantly, reaching 186 million USD, indicating that market buying and selling activity is very active. This has driven the market capitalization of Pi coin to 3.79 billion USD, while its fully diluted valuation has reached 5.84 billion USD.

Investor interest declines, Pi coin on-chain activities decrease

As of July 21, the PI coin is in a stable moving trend, facing strong resistance at $0.46 and solid support at $0.43.

Compared to other cryptocurrencies that have seen a surge in investor interest, the trading activity of Pi coin has declined, which is reflected in the sharp drop in on-chain transaction volume.

According to Santiment's data, the on-chain transaction volume of Pi coin has decreased by 21% in the past seven days. This indicates a decline in demand and that investors are becoming more cautious.

A decrease in trading volume means that there are fewer investors buying and selling the asset. This reflects a weakening of market interest, low liquidity, or overall market uncertainty.

In terms of PI coin, if there is a decrease in trading volume while the price trend is flat, it indicates a lack of market confidence. Neither buyers nor sellers have taken a dominant position, resulting in weakened price momentum.

(Source: Santiment)

Pi Network will unlock 95 million coins

Additionally, according to data from PiScan, the Pi network plans to unlock 95 million Pi coins within the next eight days. This increases the selling pressure on the token.

Due to the stagnation of prices and a decline in trading volume, unlocking the token may prolong the sluggish trend of PI, and even push the price below the support level of $0.43.

In the context of weak demand, a large influx of token supply will exacerbate selling pressure, especially in a bear market.

(Source: PiScan)

The bearish trend of Pi coin deepens, and the support level of 0.43 USD is the key point of focus

The analysis of the Elder-Ray index on the Pi coin daily chart indicates that the current market sentiment leans towards bearish. This indicator measures the strength between buyers (bulls) and sellers (bears), and it has recorded negative values since July 12, showing that strong selling pressure is dominant.

If this trend continues, the likelihood of breaking below the support level of $0.43 will increase. This may pave the way for a re-test of the historical low of $0.40 for PI coin.

However, if investors rekindle their buying interest, market momentum may change. If demand rebounds, the price of the PI token may break through the resistance level of $0.46 and even continue to rise to $0.50.

(Source: Trading View)