Smart Money Exits Pi Network — Is a Deeper Crash Coming?
2025/07/07 02:00Pi Network has flipped the $0.47 level from support to resistance, signaling growing selling pressure and a weakening bullish effort.
The token remains under heavy bearish pressure, with seasoned investors losing confidence in any near-term price recovery.
Bearish Clouds Thicken Over PI
Readings from the PI/USD one-day chart reveal that since the altcoin closed at $0.46 on July 4, it has failed to initiate a break above this price level. This former support floor has now flipped into a resistance zone that PI appears to be struggling to breach as demand falters.
PI’s extended decline has pushed its price significantly below the Leading Spans A and B of its Ichimoku Cloud, reflecting the bearish sentiment among its holders. These lines now form dynamic resistance levels above PI’s price at $0.51 and $0.63, respectively.
PI Ichimoku Cloud. Source:
TradingView
The Ichimoku Cloud tracks the momentum of an asset’s market trends and identifies potential support/resistance levels. When an asset trades above it, the price is in a strong bullish trend. The area above the Cloud is a bullish zone, indicating that market sentiment toward the asset is positive.
However, as with PI, when an asset’s price falls below the Cloud, it signals a strong bearish trend. It means sellers are in control, and upward momentum is limited.
In addition, PI’s Smart Money Index (SMI) has persistently declined since June 25. As of this writing, the indicator is at 1.22, dipping 9% since then.
PI SMI. Source:
TradingView
An asset’s SMI tracks the activity of experienced or institutional investors by analyzing market behavior during the first and last hours of trading.
When the indicator rises, it suggests increased buying activity by these investors, signaling growing confidence in the asset.
On the other hand, when it falls like this, there is high selling activity and reduced confidence from experienced investors. This highlights the lack of belief among key token holders in a near-term PI price recovery.
PI on the Brink: Will Bears Drag It to All-Time Lows?
The ongoing weakness across technical indicators paints a cautious picture for investors hoping for a swift rebound. If the bears strengthen their hold on the market and PI selloffs increase, the price could break below the newly formed support floor at $0.44 and plunge toward its all-time low of $0.40.
PI Price Analysis. Source:
TradingView
However, an uptick in demand could prevent this. If new buyers enter the market, PI could break above $0.47 and soar to $0.50.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
AI investment enters the "Trough of Disillusionment", the next 18 months will be a life-or-death test!
Goldman Sachs believes that the AI investment cycle is currently in the "trough of disillusionment," but this is not the first time. The core contradiction lies in the fact that the business models of new cloud computing providers are highly dependent on end-user returns from AI spending, while currently "there are basically zero companies that can attribute profits to AI." Social Capital founder Palihapitiya has clearly defined an 18-month key window, during which the market will decide which AI business models are sustainable and which are not.
Anthropic's Core Concern: Revenue Can Be Withdrawn at Any Time, but Computing Power Costs Are Locked in for up to 20 Years
Zheshang Securities believes that Anthropic's revenue is mainly based on usage-based billing, with remaining performance obligations covering only about 5.1 months of annualized revenue, while compute power costs are already locked in with $895.4 billion in irrevocable commitments, some extending as far as 2045. Revenues can be reduced at any time, but costs are non-exitable, creating a highly asymmetric maturity gap between the two—this is the company's real core constraint.
Triple Pressure from the Federal Reserve, Treasury, and Congress; Goldman Sachs: Liquidity Crisis May Occur in 2027
Goldman Sachs warns that the reserve ratio of bank assets has dropped to around 11%, only slightly above the crisis trough of 2019. In the second half of 2027, a deadlock in debt ceiling negotiations will force the Treasury to rebuild the TGA, triggering a "perfect storm" of a sharp drop in reserves and a surge in T-bill supply; combined with stalled money market fund buying, this will create a huge liquidity black hole. The Federal Reserve could be forced into the awkward position of lowering interest rates and launching large-scale bond purchases to rescue the market.
Crypto prices
More
