Pi Price Forecast: PI Loses $1 Support and Turns Bearish After $100M Fund Announcement

Pi (PI) has dropped by 26.2% in the past 24 hours and currently stands at $0.8837 after the Core Team announced a $100 million venture capital fund destined to strengthen the Pi ecosystem.

The team had teased a “major announcement” for today a few days ago. However, this may not have been the kind of news that market participants were expecting as it does not have an immediate impact on the performance of the PI token.

According to a blog post published earlier today, the Pi Foundation will take $100 million from the 10% tokens earmarked for ecosystem growth and will invest it in “general technology” companies, meaning that the funds will not be exclusively used to finance blockchain projects.

One of the main goals of “Pi Network Ventures” is to bring PI to the real world. This means financing projects that encounter new and promising use cases for the Pi public mainnet. Although this is a noble initiative, the developing team did not share details about how the selection process for these projects would work.

PI Supports Complaint About a Slow Migration Process

Trading volumes for PI have increased by 11% in the past 24 hours and currently account for 14% of the token’s market cap.

The selling pressure has pushed PI once again below the $1 psychological threshold after a furious rally managed to propel the token from $0.60 to $1.65 in just 5 days.

PI benefited from the market’s overall recovery but buyers may have also FOMOed the token ahead of this announcement as rumors circulated that PI could soon be listed by Binance and other major centralized exchanges upon complying with their KYB requirements.

Regular complaints from Pi supporters on social media included a slow migration procedure that has resulted in years of waiting for some Pi miners and a heavily delayed ecosystem announcement.

These complaints could explain why the token is dropping so heavily during today’s session.

PI Could Drop to $0.75 or Lower

In our latest Pi price analysis, we highlighted that the price action had already broken its bullish structure as the token dropped below its previous high and actually retested that former support from below and rejected a move above.

This confirmed a bearish short-term outlook for PI. The price retested that same level two more times in the next few hours and then collapsed below what was its most relevant support area at $0.90.

It now seems that it is retesting this support level from below as well. If the price rejects a move above and bulls fail to recapture the $1 level, PI may be doomed to drop to $0.75 or even lower if bearish momentum accelerates.

The Relative Strength Index (RSI) moved to oversold levels yesterday, indicating a strong downtrend.

Although the price has recovered in the past few hours, the short-term outlook is still bearish unless PI recaptures the $1 threshold.

The 21-period exponential moving average (EMA) has moved below the 50-day EMA and just crossed below the 200-period EMA as well. These are two powerful bearish signals that could anticipate a steeper drop ahead for PI.

The 200-day EMA is a key resistance to watch at this point, along with the 50-day EMA. These two indicators could act as ceilings for any liquidity grabs and traders should keep an eye on the price action if it gets near these levels as a solid rejection could open up the door for profitable short positions.