PI price has fallen below the key support line.

Pi Network (PI) has recently continued to fall, with the current price having dropped below the psychological support of $0.5, and before the deadline, it slid to around $0.46. This decline not only reflects the low market sentiment but may also indicate a deeper price correction. Based on on-chain data, changes in exchange wallets, and technical trends, PI is likely to approach $0.4 in the short term.

Core wallet significantly transferred out

According to PiScan tracking, one of the core wallets of the Pi Foundation (Foundation 2) has a transaction that transferred nearly 7.88 million PI, marking one of the largest internal fund movements in recent times. This move is seen by the market as a possible selling action, further undermining market confidence.

(Source: PiScan)

In addition, several early addresses related to the Pi Foundation have also transferred millions of tokens, and if these tokens enter the spot market, it will further increase selling pressure and exacerbate price fluctuations.

Centralized exchange reserves surge

Recently, the balance transfers into the PI wallets of several trading platforms are all greater than the transfers out, which indicates that both retail investors and whales are concentrating their funds into exchange accounts, preparing for potential large-scale trades in the future. Once this supply is released in a concentrated manner, it may trigger a price avalanche in a short period, especially under the current market sentiment that has already turned bearish, making it even more risky.

The technical aspect shows a bearish arrangement.

Since the end of June, PI has accumulated a fall of about 33%, and has been in the red for several consecutive days, with the technical trend continuing to be weak. The price has officially fallen below the psychological support of $0.5, facing heavy pressures ahead, while the MACD indicator is still in a bearish arrangement, with no reversal signals appearing yet; the RSI is approaching below 30, further nearing the oversold zone, indicating that selling pressure has not yet dissipated.

The possibility of reversing the decline

If Pi Network wants to break away from its current slump, it must first stabilize above $0.46 in the short term and gradually rise above $0.5; otherwise, bearish sentiment will continue to suppress buying momentum. The true turning point lies at the $0.6 level; if it can regain this price point, there will be a chance to restore market confidence and challenge the previous high of $0.66.

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Summary

Although the current price may be attractive for short-term investors, based on the overall capital flow and technical performance, there is no clear signal of a bottoming out in the market. It is recommended that investors adopt a wait-and-see approach and only intervene after the bottom is confirmed or a reversal pattern appears, to avoid entering too early in a downtrend and incurring additional losses.