NEW DELHI (CoinChapter.com) — Pi Network has to be one of the most boring crypto performers in 2024 so far. At around -8%, its year-to-date (YTD) performance price action is largely trailing behind the broader crypto market gains experienced by major players such as Bitcoin (+18.50%) and Ethereum (14.25%).
A technical chart analysis reveals a significant pattern that can offer insight into the asset’s current market behavior. Let’s discuss.
Descending Triangle Pattern
Notably, Pi Network’s native token has been trending lower inside a descending channel pattern since August 2023, characterized by a horizontal lower trendline that connects the lows and a descending upper trendline connecting the lower highs.
This downtrend occurs in the period of the crypto market’s most bullish periods in years, helped first by the speculation and then the eventual approval of spot Bitcoin exchange-traded funds (ETF).
That shows traders seldom pay attention to the latest Pi Network updates. CoinChapter regularly discusses the reasons why the Pi Network token price is down a lot. Check the entire Pi Network news catalog here.
Technically, descending triangles are bad news when they form during downtrends, i.e., their potential of sending prices lower is high. As a result, the Pi Network price can drop below its triangle’s lower trendline while eyeing $27.40, its December 2023 support level, as the next downside target by the end of February 2024.
That is down roughly 10% from current prices.
Pi Network’s Head-and-Shoulder Breakdown Underway in 2024
The Pi Network’s descending triangle downside target is one of the stops before the Pi Coin price drops further in 2024. That is due to the presence of another bearish setup dubbed the head-and-shoulders (H&S) pattern, as shown below.
PI has already entered the breakdown stage of its prevailing H&S pattern. Nonetheless, the token accompanies meager volumes, reflecting a lack of interest among traders to pursue a downtrend. At the same time, Pi Network seldom shows higher trading volumes, so its possibility of selloff remains high due to low liquidity.
As a result, PI risks falling toward $18 by March 2024, coinciding with its 0.0 Fibonacci Retracement Line. That is down 40% from current price levels.
Pi Network’s price action has been boring so far in 2024. But it’s becoming dangerous thanks to these unsupportive technical indicators.
