Pi Network Price Forecast: PI eyes record low as sell-off spree persists

• Pi Network faces downside risk, targeting the record low reached on Friday as bearish momentum lingers. 
• Centralized Exchanges' wallet balances surge, indicating increased deposits from investors.  
• The Pi Foundation offloads 2.53 million tokens, increasing its supply . 

Pi Network (PI) edges lower by around 2% at press time on Monday, diverging from the broader cryptocurrency market recovery, as selling pressure increases. The bearish sentiment prevails among PI investors as deposits surge on centralized exchanges (CEXs) alongside the Pi Foundation's offloading move.

The technical outlook suggests further losses, risking a new all-time low. 

CEX's wallet balances surge as Pi Foundation offloads

PiScan data shows the CEX's wallet balances rising to more than 401 million PI tokens, adding around 1.7 million tokens over the last 24 hours. Currently, CEXs hold 5.16% of the circulating supply.

Typically, an increase in CEX reserve points to higher selling pressure as investors aim to book profits or cut losses. 

The deposits on OKX exchanges outpace other exchanges, with a net flow of over 2 million PI tokens, while Gate.io holds the largest balance of over 193 million PI tokens. 

PI CEX balances. Source: PiScan

Amid the sell-off, the Pi Foundation has offloaded 2.53 million tokens in the last 24  hours. This sale by the core team suggests declining confidence, boosting the risk-off sentiment among investors and resulting in increased selling pressure. 

PI core team wallets. Source: PiScan

Heightened selling pressure escalates risk for the Pi Network 

Pi Network edges lower by 2% at press time on Monday, failing to surpass the S1 pivot level at $0.3642 – a support now turned resistance. The token targets the all-time low recorded on Friday at $0.3220, which is slightly above the S2 pivot level at $0.3191. 

A decisive push below the S2 pivot level could extend the correction to the S3 pivot at $0.2372. 

The Moving Average Convergence Divergence (MACD) flashed a sell signal on Friday with red histogram bars rising from the zero line and as the MACD line crossed below the signal line. Investors could increase the bearish exposure as the average lines decline in the negative direction. 

The Relative Strength Index (RSI) reads 25 on the daily chart, steadying a sideways trend in the oversold zone, suggesting heightened selling pressure. 

PI/USDT daily price chart.

To reinforce a recovery run, PI should reclaim the $0.4000 level, which previously acted as a crucial support, broken on Friday.