Key Highlights
- Pi Network’s price is down 5% at press time on Monday.
- The PI token risks further losses as a moderator addresses the ISO 20022 rumor.
- Social chatter surrounding Pi Network has decreased, indicating low interest among traders.
- Technical indicators suggest potential for another correction phase if the $0.1919 support level is broken.
Introduction to Pi Network and Market Dynamics
Pi Network, a decentralized cryptocurrency platform, has been in the spotlight recently due to fluctuations in its token value. The latest developments include a decline in buying pressure and social interest, which are critical factors influencing the market dynamics of Pi Network.
Technical Analysis and Recent Developments
The current price of Pi Network (PI) is down by 5% at press time on Monday. This decline comes as the token has extended its reversal from the 50-day Exponential Moving Average (EMA). According to a moderator from Pi Network, the recent ISO 20022 compliance rumor has been debunked, stating that this misinformation did not originate from the official @PiCoreTeam.
The social volume and interest around Pi Network have significantly decreased.
Santiment data shows that on Sunday, the social dominance was at 0.025%, with only nine social media messages compared to Wednesday’s 0.186% and 36 messages. This reduction in social chatter reflects a decline in trader interest.
Impact of ISO 20022 Rumor on Market Sentiment
The ISO 20022 rumor, which suggested potential compliance with an open global standard for financial messaging, had previously influenced market sentiment. Lumixo, a Stellar-based wallet company, announced that the Pi Network is nearing ISO 20022 compliance. However, the official statement from r/PiNetwork moderator dismissed this claim, emphasizing the need to wait for official statements from the Pi core team.
This clarification has contributed to the current phase of market volatility and a decline in buying pressure. The moderator stated, “This misinformation did not come from @PiCoreTeam.” He further advised users to avoid guessing about upcoming announcements, as this can lead to widespread dissemination of unverified information.
Technical Outlook and Potential Rebound
The technical outlook for Pi Network suggests that the token is currently trading below $0.2400. The reversal from the 50-day EMA has set a potential support level at $0.1919, marking the October 11 low. If the PI token breaches this level, it could fall to the next critical support of $0.1533 from October 10.
Technical indicators on the daily chart indicate a decline in buying pressure.
The Relative Strength Index (RSI) has reverted to the halfway line from 62, reflecting reduced momentum. Similarly, the Moving Average Convergence Divergence (MACD) is flattening out near the zero line, which could signal renewed selling pressure if it crosses below the signal line.
However, a potential rebound above the 50-day EMA at $0.2589 could extend the current trend in the momentum indicators. In such a scenario, Pi Network could test the August 1 low at $0.3220.
Conclusion and Future Implications
The ongoing developments in Pi Network highlight the interplay between market sentiment, social interest, and technical factors. The recent reversal from the 50-day EMA and the decline in buying pressure indicate a potential correction phase for the token. Investors should remain vigilant as both positive and negative forces could influence the future trajectory of Pi Network.
For those interested in Pi Network, it is crucial to follow official communications closely and avoid speculative guesses based on unverified rumors. The market’s reaction to such developments underscores the importance of staying informed through reliable sources.
