The Pi Network project, supported by a controversial community, is nearing its historic low amidst significant market instability. Its high correlation with Bitcoin makes the situation particularly vulnerable.
Dependency on Bitcoin
The recent fall of Pi Network is a direct reflection of its dependence on Bitcoin. With a high correlation of 0.93 between these assets, Bitcoin's price fluctuations directly affect Pi. Without independent catalysts, the project may continue to move in Bitcoin's shadow, jeopardizing its long-term sustainability.
Investor Confidence Decline
The investment climate surrounding Pi Network is visibly deteriorating, as shown by the behavior of the Chaikin Money Flow (CMF). This indicator highlights significant capital outflows, indicating growing investor dissatisfaction and massive exits from the project. Current market conditions hinder any recovery and put the critical support level at $0.310 at risk.
Possible Future Scenarios
Although some anticipate a potential recovery if technical resistance at $0.362 is crossed, such a prospect seems unlikely given the prevailing conditions. If the situation does not change, Pi Network may face another historic low. Significant structural changes or positive signals from the project are required to alter market sentiment.
Pi Network is facing serious challenges in an unstable market and a strong dependency on Bitcoin. The decline in investor confidence adds complexity, and substantial changes are necessary to restore trust and secure the project's future sustainability.
