Pi Network (PI) Price Analysis: Trading Volume Remains Low, Market Conditions Favor Short Positions

Gate news, Pi Network (PI) has recently faced significant price pressure. According to Captain Altcoin's analysis, after a failed breakout earlier in the week, the price of Pi coin has retreated above the key support level and is consolidating within a narrow range, lacking strong momentum. Even more concerning is the sharp decline in volume, with all major hourly indicators showing a downward trend, making the market landscape appear more favorable for short positions.

1. Pi coin price trend and key levels

After failing to maintain gains above $0.64 on June 25, the PI coin has retraced to the $0.51 to $0.52 range and continues to consolidate above the prominent demand area near $0.50. Captain Altcoin emphasized the risk of falling below $0.52 in his weekend forecast and mentioned that if momentum further weakens, the next support level would be the $0.47-$0.49 area.

As the price of Pi coin falls below $0.52 and approaches $0.50, a bearish situation begins to emerge. The current price hovers around $0.5185, with market activity gradually decreasing and volume dropping by more than 30%. This also reflects a neutral market expectation, as the token consolidated between $0.52 and $0.54 before the drop, with no bullish factors appearing to drive the price up.

The price trend of Pi coin remains weak and is in a narrow fluctuation range. In the past few trading days, the range between 0.50 dollars and 0.54 dollars has been the focus of market competition, but with momentum indicators lighting up red, short positions still dominate.

2. Technical Analysis and Support Resistance

The 4-hour chart shows that since mid-June, the price of Pi coin has been continuously declining, with the downward trend line from the peak of $0.64 currently forming dynamic resistance. The price of Pi coin has set multiple new highs but continues to struggle to break through $0.54.

The demand zone between 0.48 USD and 0.50 USD remains a key support level worth watching. The price rebounded here on June 23, but since then, momentum has not recovered. A break below this area could trigger further declines, heading towards 0.44 USD.

The trading volume remains sluggish, indicating insufficient buyer interest. The market structure will continue to favor short positions until the trading volume breaks through the trendline.

Three, Pi coin price prediction scenarios

Bullish Scenario: If it breaks above $0.54 and completely breaks the downward trend line, it is expected to test the $0.58-$0.60 level. However, this setup is currently invalid as the market lacks sufficient buying momentum to achieve this breakout.

Neutral scenario: If the price of Pi coin can maintain above $0.50, with decreasing volume and traders waiting for direction, the price of Pi coin may trade sideways between $0.50 and $0.54. This will be a consolidation period, waiting for new catalysts to emerge.

Bearish scenario: A drop below $0.50 may accelerate the decline to $0.47-$0.49. If this area is breached, the next support level will be around $0.44. This is currently the most concerning scenario and also an opportunity for short positions to gain further momentum.

(Source: Trading View)

Conclusion:

The price of Pi coin is currently hovering between the declining resistance level and the short-term support level, with both market momentum and volume weakening. Traders are closely watching the $0.50 level, which has become a dividing line. If the price fails to break through $0.54 or falls below $0.50, then as we enter July, the price of Pi coin may continue to consolidate sideways and even face the risk of further declines. Investors should remain cautious and closely monitor market dynamics.