Pi Network Traders Fear Price Drop As Mainnet Migration Deadline Ends

Pi Network (PI) has been experiencing an ongoing downtrend, which has many traders on edge. Despite the recent price struggles, there is speculation that the altcoin could be on the verge of a breakout. 

However, the current market conditions suggest that such a rally might face significant challenges. Traders, acknowledging the uncertain environment, are preparing for a potential price crash rather than a breakout.

Pi Network Traders Are Bearish

Pi Network traders are positioning themselves for a downtrend, as reflected by the deeply negative funding rate in the Futures market. The funding rate shows that more market participants are holding short contracts than long ones, signaling that traders are anticipating a price fall. Adding to their concerns is the deadline of the grace period provided to the investors for KYC and Mainnet Migration. Failing to do so by today, March 14, could lead to avoiding losing most of the investors’ balance, except for the Pi mined within the last 6 months before migration.

This sentiment could also weigh heavily on the altcoin’s potential for a quick recovery. The reason behind this is that traders might look to take profits from any short-term gains and capitalize on expected declines.

Pi Network Funding Rate. Source: Coinglass

The overall macro momentum for Pi Network is showing signs of bearishness. Key technical indicators, like the Moving Average Convergence Divergence (MACD), are signaling that the altcoin is closing in on a bearish crossover. This indicator is often seen as a reversal trigger, suggesting that Pi Network could experience further price drops if the trend continues.

With the MACD approaching a bearish crossover, investors may be anticipating losses in the near future. This sentiment is contributing to the overall cautious market environment surrounding Pi Network, which is struggling to find any sustained upward momentum.

PI Network MACD. Source: TradingView

PI Price Attempts Breakout

Pi Network’s price is currently holding at $1.67, just above the support level of $1.64. While it is attempting to break out of the descending channel, the current market conditions suggest that such a breakout may be difficult. The Pi Day hype, however, could provide a short-term boost, possibly giving PI the momentum to break through its resistance.

If Pi Network fails to break out of the descending channel, it risks falling through the $1.64 support level. A drop below this key level could send the price sliding to $1.43 or lower, extending the losses. In this scenario, the altcoin could remain in a consolidation phase or continue its downward trend.

PI Network Price Analysis. Source: TradingView

On the other hand, if Pi Network capitalizes on the social media hype surrounding Pi Day, it could break through the $1.98 resistance barrier. Successfully breaching this level would confirm a breakout and invalidate the bearish outlook. This would set the stage for further price increases and potential gains, but it will depend heavily on market sentiment and investor action.