Pi Network Price Prediction: PI may fall another 40%, technical indicators have completely collapsed.

The price of Pi Network (PI) token continues to be in free fall, hovering around $0.2814 on September 24, extending the trend of a 19% big dump at the start of this week. Even more concerning for investors is that the technical indicators have turned extremely bearish, with several analyses indicating that the PI token may face further collapse, potentially testing price levels below $0.15.

####The founder's appearance in Seoul failed to stop the fall, PI hit a historic new low

The two mysterious founders of Pi Network, Nicolas Kokkalis and Chengdiao Fan, made their first public appearance on Monday at a community meetup organized in collaboration with Sign in Seoul. This was supposed to be an important moment to boost market confidence, however, contrary to expectations, the PI Token not only failed to rebound but also set a historical low of $0.1842 on that day. Although it eventually recovered some ground to close at $0.2860, the overall market sentiment remained gloomy.

At the meeting, the founder showcased a demonstration of the Pi Network smart contract development and emphasized the upcoming protocol upgrade and AI-based KYC features designed to expedite the user onboarding process. However, these technological advancements and future plans clearly failed to impress investors, and doubts about the long-term development prospects of the Pi Network remain.

####Buy on dip? CEX wallet reserves decreased by nearly 8 million PI

(Source: PiScan)

Despite the continuous fall in price, a notable phenomenon is that, according to PiScan data, a net outflow of 7.96 million PI tokens has occurred from the reserves of centralized exchanges (CEX) in the past 24 hours. This data aligns with the trend of PI slightly rebounding from its historical low, indicating that some investors may be accumulating chips at low levels.

This capital flow may reflect two entirely different market forces: on one hand, some confident investors may believe that the current price is severely undervalued and are buying on the dip; on the other hand, some analysts warn that this could be investors transferring tokens from exchanges to private wallets for long-term holding to avoid further market volatility.

Regardless, the decrease in CEX wallet reserves does provide a glimmer of hope for the PI Token, but whether this is enough to reverse the overall downtrend remains to be seen.

####Technical Analysis: Multiple Indicators Warn PI May Fall 40%

(Source: Trading View)

From a technical perspective, the outlook for Pi Network is concerning. As of Tuesday, the trading price of PI is approximately $0.2700, continuing its fall for the third consecutive trading day. The recent pullback has rendered the breakdown of the downward channel ineffective, with the target directly aimed at the S2 support level of $0.2387.

What is even more concerning is that if the closing price decisively falls below the historical low of 0.1842 USD, it will confirm the complete collapse of the downward channel, which may lead to further decline to the S3 support level of 0.1555 USD, a drop of approximately 40% from the current price.

Multiple technical indicators indicate that sellers completely dominate the market:

· Relative Strength Index (RSI): Has fallen below 25, entering an extremely oversold area. While this may typically signal a rebound, in a strong downtrend, the oversold condition may persist for a longer period.

· Moving Average Convergence Divergence (MACD): It has continued to decline since crossing the signal line on Sunday, indicating that bearish momentum is steadily increasing.

· Downward channel breakout failure: The price failed to remain above the previously formed downward channel, indicating that selling pressure far exceeds market expectations.

####Potential Rebound Targets and Key Resistance Levels

If the PI price experiences a technical rebound, investors should closely monitor the following key resistance levels:

· Center support level 0.2838 USD: This level has turned from support to resistance and is the first key position that needs to be broken through.

· S1 Support Level (turned into resistance) $0.2996: Breaking this level may challenge higher levels.

· Upward trend line at 0.3220 USD: This is a more significant technical resistance level, and breaking through this level may indicate a short-term trend reversal.

However, considering the current market sentiment and technical indicators, the likelihood of this upward breakout is relatively small. The more likely scenario is that any rebound will become an opportunity for a new round of selling.

####Fundamental Challenges Facing Pi Network

The current price predicament of Pi Network is not merely a technical issue, but rather reflects a series of fundamental challenges faced by the project:

#####1. Practicality Concerns

Despite the fact that Pi Network has been running for several years, the actual application scenarios for its Token remain limited. The smart contracts and protocol upgrades mentioned by the founder at the meeting in Seoul have yet to translate into tangible value that users can perceive.

#####2. Oversupply Issue

A large number of untransferred PI tokens remain undecided, and this potential supply may enter the market at any time, creating ongoing selling pressure. The market is concerned that once more early miners complete KYC and are allowed to transfer their tokens, it may trigger a new wave of sell-off.

#####3. Insufficient Liquidity

The liquidity of the PI Token on mainstream exchanges is still limited, which leads to increased price volatility and makes it more susceptible to large transactions. In a low liquidity environment, even relatively small sell orders can trigger dramatic price fluctuations.

#####4. Community Trust Crisis

One of the core value propositions of Pi Network is its strong community foundation. However, recent price performance and market reactions following the founder's appearance indicate that community confidence may be wavering. The ongoing debate within the community regarding whether the exchange-traded PI is "real" has further exacerbated this trust crisis.

####Investor Response Strategy: Risk Management is Crucial

In the face of the uncertain prospects of Pi Network, how should investors respond? Analysts offer the following suggestions:

· Carefully assess risk tolerance: The PI Token is currently in a high-risk stage, and investors should adjust their position size according to their own risk tolerance.

· Set stop-loss levels: Consider setting stop-loss below key support levels to prevent larger losses.

· Batch operation: For investors who are optimistic about the long-term prospects, consider a batch building strategy rather than a one-time large investment.

· Pay attention to fundamental developments: Closely monitor the technical progress, user growth, and ecosystem construction of Pi Network, as these factors may ultimately determine the long-term value of the project.

The future of Pi Network is still full of uncertainty. Although the founders' first public appearance is an important milestone in the project's development, the market's reaction indicates that investors need to see more substantial progress to rebuild confidence in this controversial project.