- Pi Network edges lower on Friday as it struggles to reclaim the $0.50 psychological mark.
- A surge in social dominance reflects increased chatter surrounding the Pi network.
- Investors are on a buying spree as CEX balances decline while PI Foundation offloads 5.81 million PI tokens.
Pi Network (PI) ticks lower by nearly 2% at press time on Friday following a Doji candle formed the previous day. As Pi Network bids in a sideways range under $0.50, social chatter grows concurrently with increased interest from investors. However, a net outflow from Pi Foundation wallets suggests that confidence is declining.
Pi Foundation outflow outpaces investors’ interest
PiScan data shows a sharp net outflow of 2.15 million PI tokens from the OKX exchange in the last 24 hours. The OKX net outflow outpaces the net inflows from all other exchanges, resulting in a total net outflow from Centralized Exchanges (CEX) of 36,580 PI tokens.
CEXs wallet balances. Source: PiScan
Typically, a drop in CEX wallet balances indicates increased demand from investors as the broader market recovers.
However, the Pi Foundation 2 wallet records a net flow of -5.81 million Pi Tokens, outpacing the total net outflow from CEX wallet balances. Investors must remain cautious to avoid becoming exit liquidity to the outflows of the Pi Foundation team.
Pi core team wallets. Source: PiScan
Pi Network social dominance is on an uphill
The social dominance score measures the frequency of mentions of an asset in social conversations. Santiment’s data shows Pi Network’s social dominance at 0.39% so far this Friday, up from 0.18% on Monday. Amid the increasing social chatter this week, the total weighted sentiment at -0.327 reflects a bearish tilt.
Social dominance score. Source: Santiment
Pi Network risks a crucial support level fallout
Pi Network edges lower around 2% at press time on Friday, trading between the $0.5000 psychological mark and the low of June 22 at $0.4711. A potential daily close below the latter could extend its downfall towards $0.4000, last tested on June 13.
The technical indicators suggest a bearish influence on trend momentum as the Moving Average Convergence/Divergence (MACD) indicator triggers a sell signal (MACD line crossing below its signal line) on the daily chart.
The Relative Strength Index (RSI) at 36 hovers close to the oversold boundary zone, indicating bearish momentum still persists.
To reinforce an uptrend, Pi Network must close above the $0.5031 level, aligning with the June 22 close. If so, the uptrend could target the $0.6600 level last tested on June 25.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
Source