Pi Network Price Forecast: PI extends losses below $1 billion market capitalization

• Pi Network hovers around $0.083 on Thursday after facing 7% losses two days in a row.
• Broader market uncertainty linked to the US Fed rate hike and the failure of the CLARITY Act to advance weighs on Pi Network.
• The technical outlook for PI is bearish, with the $0.0819 support level in focus.

Pi Network (PI) faces intense downside pressure, edging lower on Thursday after two consecutive days of 7% losses. The broader market uncertainty weighs on the Pi Core Team’s efforts to boost ecosystem expansion through network upgrades. The technical outlook for PI is bearish, with bears watching for a break below the $0.0819 support level. 

Pi Network market capitalization drops below $1 billion amid rate hike, CLARITY Act delay

The CLARITY Act failed to advance to the US Senate floor for cloture voting on Tuesday, followed by the US Federal Reserve (Fed) raising interest rates by 25 bps on Wednesday, posing regulatory and macroeconomic challenges for crypto investors. These challenges overshadow the recent SoloHost Apps launched by the Pi Core Team to boost development and ecosystem activity.

The broader cryptocurrency market maintains a risk-on sentiment, with the Fear and Greed Index holding flat at 63, above the neutral zone, on Thursday. However, high-risk, low-valuation altcoins such as Pi Network have seen heavy selling over the last two days, with declines exceeding 14%. CoinMarketCap data shows the PI token market cap dropped below $1 billion on Wednesday, reflecting reduced investor confidence.

Technical outlook: Pi Network gains bearish momentum

Pi Network trades in the red for the third consecutive day on Thursday, extending its near-term bearish bias. PI token breached below its 50-day Exponential Moving Average (EMA) around $0.0936 on Wednesday, reinforcing the downside structure with the overhead 100- and 200-day EMAs at $0.1037 and $0.1284.

Momentum reinforces this weak tone, with the Relative Strength Index (RSI) slipping toward the oversold area near 34, while the Moving Average Convergence Divergence (MACD) has crossed below zero and its signal line, with a negative and expanding histogram hinting at persistent selling pressure.

Looking down, the immediate support aligns with the 23.6% Fibonacci retracement level at $0.0819, measured from $0.1341 to $0.0704. A confirmed breakout below this level could target the $0.0704 swing low, threatening a potential new all-time low if selling pressure sustains.

On the upside, the 50-day EMA at $0.0936 serves as the immediate bullish target in case of a rebound. Beyond that, the 50% retracement level at $0.0971 and the 100-day EMA at $0.1036 could act as the next resistance levels.

(The technical analysis of this story was written with the help of an AI tool. Know more.)