Pi Network (PI) Drops 10% Amid Bearish Signals: CMF Outflows Surge, Death Cross Looms

Pi Network (PI) is facing renewed selling pressure as technical indicators turn decisively bearish, triggering a 10% drop in the past 24 hours. A combination of declining trend strength, growing outflows, and a looming death cross has put the token under intense scrutiny, raising questions about its near-term trajectory.

Bearish Momentum Builds as Key Indicators Shift

Market sentiment around Pi Network has taken a sharp turn as the Directional Movement Index (DMI) highlights a clear transition from bullish to bearish momentum. The Average Directional Index (ADX), which measures trend strength, dropped from 43.68 to 39.17—still strong, but showing early signs of fading.

More telling is the divergence between the +DI and -DI lines: the +DI, indicating bullish pressure, fell significantly from 22.11 to 13.29, while the -DI surged from 11.32 to 30.95. This crossover, paired with a widening gap between the two lines, suggests that sellers are taking the reins.

"Unless we see a sudden shift in sentiment or a volume-backed reversal, the path of least resistance for PI appears to be downward," said one market analyst.

Money Flows Turn Negative as Investor Confidence Wanes

Adding to the concerns is Pi Network’s Chaikin Money Flow (CMF), which plunged from 0.07 to -0.13 in just a day. The CMF, a key indicator of buying and selling pressure, turning negative reflects an uptick in outflows and a loss of confidence among investors.

A CMF reading below zero typically means that money is exiting the asset faster than it's entering—a red flag for traders who monitor momentum and liquidity.

“This shift suggests that institutional and retail sentiment is weakening,” noted a trader familiar with volume-based metrics. “Without a fresh wave of inflows, the price may continue to slip.”

Death Cross Nears: Will PI Slip Below $0.50?

Perhaps the most worrying technical setup for PI is the potential death cross—where the short-term exponential moving average (EMA) dips below the long-term EMA. If confirmed, it would add further weight to the bearish outlook.

Currently, the next significant support for PI lies near $0.54. A decisive break below this level could pave the way for a drop under $0.50, a psychologically important threshold for traders.

Yet, hope isn’t lost. If buying interest returns and PI reclaims $0.66, it would signal the potential start of a recovery. A break above that level could set the stage for a climb toward the $0.789 resistance, marking a critical juncture for bullish momentum.