Pi Network has experienced a sharp depeg from Bitcoin, what exactly is going on?

As Bitcoin approaches its annual high, some alts are clearly in a slump. Pi Network (PI), which was once praised for its participatory and mobile-first model, has seen its valuation fluctuate under the influence of declining technical indicators and a palpable atmosphere of distrust. This project, long supported by the community, now faces harsher market realities, where any structural weakness will be immediately penalized. Under the dual pressures of dumping pressure and future uncertainty, this crypto asset is facing a significant development opportunity, approaching a critical threshold.

After the launch of two new features on Pi2Day, the current technical condition of the Pi Network is not optimistic, and its price is dangerously approaching a low point. In fact, due to the loss of investor confidence and the Chaikin Money Flow (CMF) being negative, this crypto asset is about to fall to a historical low of 0.499 dollars.

The key indicator of capital flow analysis, CMF, "is approaching the zero line," which indicates that capital flow is mainly flowing out; in other words, funds are withdrawing from the project. This shows that market confidence has significantly deteriorated.

The following are the main technical elements defining this bearish sequence:

· Pi Network current price: approximately $0.499, which is only 20% higher than its historical low price of $0.400;

· Key support level: located at $0.493, if broken, the price may drop towards $0.450, or even retest historical lows;

· CMF (Chaikin Money Flow) indicator: Close to zero, indicating an increase in capital outflow, equivalent to investors withdrawing funds;

· Attention resistance level: $0.518, only consider bullish dynamics if this level is broken.

In the current environment, due to the lack of catalysts and a generally cautious sentiment, these technical indicators are difficult to provide an optimistic short-term outlook.

(Source: Gate)

The Sharp Decoupling from Bitcoin: Pi Network's Isolation During the Bull Market

Although the price of Bitcoin is reaching historic highs, the development momentum of the Pi Network is completely different. The correlation between these two assets is now almost nonexistent.

Therefore, the correlation between Pi Network and Bitcoin has dropped to only 0.07, which was significantly higher in the past. This statistical breakthrough is significant. The Pi Network cryptocurrency no longer benefits from the market driving effect, which is rare in a cycle where altcoins typically benefit from Bitcoin momentum.

This increasing decoupling reflects investors' structural lack of interest in the project. Although other alts benefit from the bullish wave in the market, Pi Network remains disconnected from the current cycle.

This lack of consistency has led to the asset being gradually isolated, making it increasingly difficult to integrate into traditional Crypto Assets investment strategies. The lack of correlation means that Pi Network cannot benefit from the growth of Bitcoin.

In the medium term, this isolation may have far-reaching effects. The lack of dynamics related to Bitcoin has caused Pi Network to lose its visibility and has also resulted in a loss of new capital inflows. In a market dominated by leveraged logic for major assets, cryptocurrencies that no longer react to Bitcoin's fluctuations have become difficult-to-justify speculative bets. To hope to reverse the trend through a possible reversal, the project needs to regain market confidence, clarify its value proposition, and, most importantly, restore a minimum level of relevance to industry dynamics.