Pi Price News: PI Breaks $1.30 Support – Will It Drop Below $1?

Trading volumes have been slashed in half in the past day as traders’ interest in the token seems to have waned after the price action broke its bullish structure.

Tomorrow could be quite a volatile day for PI as the Pi Core Team said that they will be making an important “ecosystem announcement.”

Despite this latest rally, PI is still trading 62.7% below its all-time high of $2.98 per token as bearish momentum took over the price action right after the project’s public mainnet was launched.

Market Sentiment Shifts and Lifts PI

Up until last week, PI was on a strong downtrend and showed no signs of a recovery. However, market sentiment suddenly shifted after President Donald Trump showed a willingness to negotiate with China to reach a deal and reduce tariffs to normal levels.

The Fear and Greed Index has recovered from Extreme Fear a month ago to Greed at the time of writing in just a month, indicating how market conditions appear to have changed significantly for investors.

The Federal Reserve opted to keep rates unchanged in its last meeting but hinted that the U.S. economy could face higher unemployment and inflation if trade policies are not adjusted rapidly.

All of these factors associated with the macro backdrop play an important role in shaping the valuation of a high-risk project like Pi.

Meanwhile, project-specific developments like tomorrow’s announcement could also have a significant impact on the price action.

Break of Structure Endangers Rally

Now, looking at the hourly chart, it seems that PI broke its bullish structure yesterday and retested its second-best higher high. This confirmed a break of structure and indicates that a downtrend has started.

The strength of this downtrend is still moderate as the Relative Strength Index (RSI) has not moved to oversold levels, which typically indicates a strong change in the price trend.

However, the MACD’s histogram dropped to extremely low levels, so investors should be cautious at this point as there seems to be significant selling pressure at these levels.

The key support to watch down the road would be the 200-period exponential moving average (EMA) in this lower time frame.

PI rose rapidly after a bullish ‘golden cross’ between the 21-period and 200-period EMA, so it could go down just as easily if a ‘death cross’ occurs at some point.

For now, the price seems headed to retest the $1.3 former resistance from below for a second time. If bulls fail to recapture this level, this could result in another significant downtick in the near term.

This price area coincides with the point of control (PoC) for PI for these first two days of the week. This is the area where the most trading volume has been concentrated. Hence, if the price rises above it, it means that bulls are in control of the price action and vice versa.

There seems to be enough buying pressure at around $0.80 to $1.1. Hence, bulls will likely give it another try to see if they can push the price above this former support to flush out some short sellers and get the rally going once again.