• Pi Network is down 2% on Tuesday, testing the bearish breakout of a rising support trendline near $0.1300.
• Negative cumulative volume delta reflects a seller-dominant spot market, suggesting further downside potential.
• The technical outlook for PI is bearish, prompting a 10% downside risk toward the June 6 low at $0.1184.

Pi Network (PI) trades in the red below $0.1300 on Tuesday, testing the bearish breakout of a rising support trendline amid rising selling pressure and faltering broader market sentiment.

Sellers maintain dominance amid weak market sentiment

Pi Network continues to face intense selling pressure in the spot market as demand wanes amid weakening broader market sentiment. CryptoQuant data show the taker Cumulative Volume Delta (CVD) has been negative and contracting over the last 90 days, suggesting sellers are dominating the market based on the difference between market buy and market sell volumes.

At the same time, the broader market sentiment weakens. CoinMarketCap’s Fear and Greed Index at 21 on Tuesday reflects a clear risk-off signal and could flash “Extreme Fear” if it falls below 20. Typically, high-risk, community-driven, speculative crypto assets like PI token extend losses amid risk-averse market conditions.

Technical outlook: Will Pi Network hit a fresh low?

Pi Network extends a bearish tone as price drops below the 50-period Exponential Moving Average (EMA) at $0.1335 on the 4-hour chart and the $0.1300 mark. The PI token has slipped back under the prior rising support trendline around $0.1300, where a decisive close would confirm the bearish breakout.

From a technical perspective, the breakout could threaten the 78.6% Fibonacci retracement level at $0.1251, measured over the downswing from $0.1532 to $0.1184. The 100% Fibonacci anchor at $0.1184, followed by the 127.2% Fibonacci extension level at $0.1103, could emerge as the next bearish objectives if the downtrend extends.

That said, the momentum indicators suggest renewed selling pressure, with the Relative Strength Index (RSI) tanking to 31 on the 4-hour chart while the Moving Average Convergence Divergence (MACD) slips below the signal line, triggering a sell signal as downside pressure remains dominant despite being close to oversold conditions.

On the topside, initial resistance appears in a tight cluster between the overhead trendline near $0.1300, followed by the 50-period EMA at $0.1335, close to the 50% Fibonacci retracement at $0.1346. Further up, the 200-period EMA at $0.1390 and the 78.6% retracement at $0.1441 cap the broader recovery.

(The technical analysis of this story was written with the help of an AI tool.)