Pi Network's Market Cap Plummets 52% Amid Selling Pressure

Pi Network, a cryptocurrency project that reached a record market capitalization of $19.2 billion on February 26, has since experienced a significant decline, with its market cap falling to $9.2 billion. This downturn is attributed to mounting selling pressure, which has led to a 22% correction over the past two weeks and an additional 8% drop in the last 24 hours. The negative sentiment surrounding Pi Network has intensified following a sharp sell-off after the Know Your Customer (KYC) deadline.

The technical indicators for Pi Network (PI) suggest that sellers are currently in control. The Average Directional Index (ADX) for PI is at 18.3, indicating a weak trend. The ADX has remained below the key threshold of 25, signaling that the current downtrend lacks strong momentum. However, the relatively flat ADX reading suggests that the downtrend is still present. The +DI (Positive Directional Indicator) has dropped to 16.1 from 23 two days ago, while the -DI (Negative Directional Indicator) has climbed to 26.2 from 19.6 yesterday. This widening gap between the +DI and -DI lines highlights that sellers are regaining control, reinforcing the existing downtrend. Unless the +DI starts to recover and the ADX rises above 20, PI may continue to face bearish pressure in the short term.

Additionally, the Chaikin Money Flow (CMF) for PI is currently at -0.14, remaining in negative territory for the past two days. This shift marks a clear change in buying and selling dynamics, as the indicator is now at its lowest level in the past week. A CMF above 0 indicates accumulation (buying pressure), while a CMF below 0 suggests distribution (selling pressure). With PI’s CMF now at -0.14, this signals that sellers have gained control, adding weight to the ongoing downtrend. The negative reading may point to continued weakness unless buying volume picks up in the short term.

Pi Network has come under pressure in recent days following criticism surrounding the launch of its .pi domains, adding to the negative sentiment that started with a major sell-off after its mainnet migration. If this corrective trend continues, PI could test the support at $1.23, and a break below