Pi Decouples From Bitcoin as Recovery Above $1 Becomes More Difficult

Pi Network (PI) has recently gone through a difficult price action phase. After dropping below $1, the altcoin's recovery seems to be losing momentum.

Unlike previous recoveries, the current market conditions suggest that Pi Network may face more challenges in regaining the $1.00 price level.

Pi Network is Losing Momentum

The Average Directional Index (ADX) is currently at 32, significantly higher than the 25 threshold. This indicates the current trend is strengthening. In this case, Pi Network's trend is downward, consolidating the bearish sentiment among traders and investors.

Further evidence of this strong downward trend can be seen through the Parabolic SAR indicator. The points above the candles are a classic signal suggesting prices are likely to continue declining. Such technical indicators often encourage cautious trading behavior and can increase selling pressure.

Pi Network's price has shown weakness in its correlation with Bitcoin, currently measured at 0.25 and gradually decreasing. This low and declining correlation suggests PI is beginning to operate more independently rather than reflecting Bitcoin's movements.

This divergence is crucial because Bitcoin has recently reached a new All-Time-High (ATH) and may continue to rise. However, Pi Network is less likely to leverage Bitcoin's price momentum due to differences in its price movement.

The declining correlation suggests PI may struggle to follow Bitcoin's upward trend.

PI Price Targeting a Price Increase

With the current price at $0.77, Pi Network needs to increase by approximately 28% to regain the $1.00 level. With indicators showing a strong downward trend and weak correlation with Bitcoin, this price target seems ambitious in the short term.

Increasing pessimism could erode investor confidence, leading to more selling. If the price breaks below the critical support level of $0.71, Pi could face further decline, potentially sliding to $0.61. This decrease would deepen the bearish prospects.

On the other hand, if broader market conditions improve, Pi Network could overcome resistance levels at $0.78 and $0.87. Surpassing these points could invalidate the current bearish argument and pave the way for a new price increase targeting the $1.00 goal.