Pi Network Risks Fresh Low as 138 Million Tokens Head for Unlock in October
Pi Network (PI) faces renewed strain as 138.21 million PI tokens, valued at $37 million, are set to be unlocked in October.
The altcoin has been buying and selling sideways since September 23 and now dangers retesting its all-time low if demand continues to falter.
PI Under Pressure as Sentiment Turns Bearish
October’s unlock comes at a time when investor confidence is already shaky. On-chain knowledge reveals PI’s weighted sentiment slipped beneath zero on September 24 and has remained beneath that line ever since. According to Santiment, that is at -0.63 on the time of writing.
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Weighted sentiment combines the amount of social mentions of an asset with the ratio of optimistic to unfavourable commentary. It helps measure whether or not on-line discussions round a token are leaning extra bullish or bearish.
When weighted sentiment is above zero, it signifies extra optimistic feedback and discussions in regards to the cryptocurrency than unfavourable ones, suggesting a positive public notion.
On the opposite hand, a unfavourable studying signifies extra criticism than help, reflecting bearish sentiment.
With PI’s weighted sentiment holding firmly beneath zero for over per week, it highlights that sentiment amongst market contributors has worsened and will trigger further price dips.
Further, readings from the PI’s Super Trend Indicator help this bearish outlook. It continues to behave as a dynamic resistance above PI’s worth at $0.3279.
This indicator helps merchants determine the market’s path by inserting a line above or beneath the worth chart based mostly on the asset’s volatility.
As with PI, when an asset’s worth trades beneath the Super Trend line, it alerts a bearish market the place promoting strain is dominant. This leaves PI susceptible to extra declines.
Will Bears Drive It to $0.18 or Bulls Force a Rebound?
The lack of demand for PI and the upcoming provide inflow imply the altcoin might both stay trapped in sideways consolidation or face a pointy breakdown. If demand weakens additional, PI might break beneath its speedy help at $0.2573 and plunge toward its all-time low at $0.1842.
However, if merchants step in to soak up the incoming provide, PI might stabilize and try a rebound. It might break above $0.2917 and push towards $0.3987 in that case.
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