Pi Coin Rejects Positive Sentiment from Latest Start-Up Fund! Price Dips Below $1

Pi Coin has been at the centre of attention lately due to the Pi Foundation's announcement of the Pi Network Ventures, a $100 million startup fund aimed at accelerating the adoption of Pi in real-world applications.

However, despite this positive development, the price of Pi Coin has plummeted, dipping below the $1 mark in the past 24 hours, losing 17% of its value.

This article takes a closer look at the factors contributing to Pi Coin's decline despite the hype surrounding the $100 million fund and explores the technical indicators that suggest potential challenges ahead for the token.

Pi Network Launches $100 Million Fund Amidst Dips in Coin Price

The Pi Foundation launched the Pi Network Ventures, a $100 million startup fund designed to drive the adoption of Pi Coin in sectors such as artificial intelligence (AI), fintech, e-commerce, and consumer applications.

This initiative, funded by 10% of Pi's total supply, aims to make investments in early-stage companies integrating Pi Coin into their business models. Despite creating a stir within the Pi ecosystem, the launch has not been enough to sustain the upward momentum for Pi Coin.

The initial response to the fund was positive, especially after months of Pi Coin's price stagnation. In the past two weeks, Pi has gained 85%, in part due to speculation that Binance would soon list the token.

However, despite the initial surge, technical indicators are now signalling that the momentum is slowing, and Pi's recent drop in price has many investors concerned.

READ ALSO: Pi Network’s Mainnet Launch and Tokenomics! Here is What You Need to Know

Technical Indicators Show Weakening Momentum for Pi Coin

Pi Coin's technical charts are flashing warning signs. One of the key indicators showing a decline in strength is the ADX (Average Directional Index), which dropped from 72 to 35.46 in just two days.

A reading above 25 generally indicates a strong trend, but a drop below 20 signals that a trend may be losing strength or entering exhaustion. This is a concerning signal for those who were hoping for sustained bullish momentum.

Additionally, the +DI (bullish pressure) has decreased significantly from 61 to 23.99, while the -DI (bearish pressure) has risen from 1.2 to 25.

This crossover of the +DI and -DI suggests that the bearish momentum is starting to outweigh the bullish sentiment, and unless fresh buying pressure returns, Pi Coin might enter a consolidation or correction phase.

Chaikin Money Flow (CMF) Drops, Suggesting Profit-Taking

The Chaikin Money Flow (CMF) is another crucial indicator pointing towards a possible price correction. The CMF dropped from 0.24 to -0.05 over two days, signaling that buying pressure is fading and selling pressure may be taking over.

The CMF measures the flow of money into and out of an asset, with positive readings suggesting accumulation (buying), and negative readings indicating distribution (selling).

Although a reading of -0.05 is not deeply bearish, the sharp drop from a strong positive territory suggests that investor confidence may be weakening.

This shift, coupled with the news of the $100 million Pi Network Ventures fund, could indicate that the hype around the announcement was short-lived and that traders might be taking profits after the initial rally.

Pi Coin Falls Below $1 as Bearish Indicators Take Hold

In the wake of these weakening indicators, Pi Coin's price has once again fallen below the $1 mark. The latest price action aligns with several bearish technical signals, including tightening Exponential Moving Averages (EMAs) and potential "death crosses."

These technical patterns are commonly associated with further downside price action, suggesting that Pi Coin could face additional challenges in the short term.

If the downward trend continues, Pi Coin could test support levels around $0.90. A breach below this level could open the door for further declines, possibly down to $0.78 or even $0.636. However, there is still a possibility for a reversal.

If the bulls regain control, Pi Coin could see a bounce back to test resistance at $1.23, and a clean break above this could pave the way for a recovery toward higher resistance levels.

READ ALSO: Can PI Go Up Again? Understanding the Current Bullish Sentiment

Conclusion

Despite the ambitious $100 million Pi Network Ventures startup fund, Pi Coin is currently struggling to maintain its bullish momentum. The price has fallen below $1, signaling that investor sentiment may have shifted toward caution.

With technical indicators showing signs of weakening, it remains to be seen whether Pi Coin can recover or if it will enter a consolidation phase.

For investors looking to track Pi Coin’s price and stay informed about future developments, keep an eye on its performance in the coming days.

If you're interested in trading Pi Coin or other digital assets, consider joining Bitrue Exchange for a seamless trading experience. You can also stay updated on the latest crypto news by visiting the Bitrue Blog.

FAQs

1. Why did Pi Coin's price drop despite the announcement of the $100 million startup fund?

The price drop is due to weakening technical indicators, including a decline in the ADX and Chaikin Money Flow, suggesting fading investor confidence and profit-taking.

2. What is Pi Network Ventures, and how is it related to Pi Coin?

Pi Network Ventures is a $100 million startup fund launched by the Pi Foundation to promote the real-world adoption of Pi Coin, primarily through investments in AI, fintech, and other sectors.

3. What are the next price levels to watch for Pi Coin?

If Pi Coin continues to fall, key support levels to watch are $0.90, $0.78, and $0.636. However, a bullish reversal could see resistance at $1.23 and higher levels.