Pi Network Price Drops Amid Mixed Signals
The price of Pi Network (PI) fell 2.5% on Friday. This continued a 3% loss from the previous day. Earlier this week, the price tried to recover but failed to rise above the 50-day Exponential Moving Average (EMA). At the same time, token outflows from Centralized Exchanges (CEXs) increased. An announcement about Pi Network Ventures investing in OpenMind and testing AI models did not boost market sentiment.
Pi Network Ventures Invests in OpenMind
Pi Network Ventures, a $100 million investment fund, announced its investment in OpenMind on Thursday. OpenMind creates operating systems and protocols for robots. The investment amount was not disclosed.
The partnership has run AI image recognition models on Pi Nodes. There are 350,000 active Pi Nodes participating. This shows Pi Network’s potential for decentralized AI training and computing.
Strong On-Chain Activity Signals Growing Demand
PI tokens on KYC-verified CEXs come from users allowed to transfer tokens to the mainnet. A fall in available tokens on these exchanges means users are buying more PI.
PiScan data reports a net outflow of 3.48 million PI tokens from CEX wallets in the past 24 hours. Two large investors, called whales, withdrew 2.76 million PI tokens from the OKX exchange during this time. This suggests confidence among large holders.
Technical Analysis Shows Risk of Price Drop
Pi Network trades below $0.2500 on Friday, marking two days of losses. The price fell back from the 50-day EMA at $0.2605, as buying pressure weakened. The Relative Strength Index (RSI) slid down to 54, nearing the neutral 50 level.
This is the fourth time since May that the 50-day EMA resisted a price rise. The token risks losing this week’s earlier gains. Key support levels are at $0.2000 and $0.1919, the October 11 low.
The Moving Average Convergence Divergence (MACD) indicator is near zero. It shows declining bullish strength. A MACD crossover below the signal line could confirm a bearish trend.
If the price breaks above the 50-day EMA at $0.2605, it could rise to $0.3220, the August 1 low.
