Pi Network Venture launched a $100 million startup fund to support PI token adoption in AI and fintech. The announcement came as Pi (PI) fell 17% in 24 hours, dropping below the $1 mark on May 14, 2025.
Despite the large-scale initiative, the PI token erased most of its recent gains. According to the Pi Foundation, the fund will support early to Series B companies that adopt PI for real-world use. The funding will be provided mainly in PI tokens, not fiat currency.
The move came after PI rebounded 85% in two weeks amid growing interest and speculation about a Binance listing. However, the launch of Pi Network Venture did not stop the market from reacting to technical signals that now show signs of weakness.
Pi Network Venture Fund Backed by 10% of PI Supply
Pi Network Venture will use 10% of the PI token supply to back its startup investments. The fund targets sectors like artificial intelligence, financial technology, ecommerce, and mobile applications.
By distributing PI tokens to selected companies, the Pi Foundation aims to push for broader adoption. The strategy aligns with the project’s plan to create utility beyond speculation.
Despite renewed interest in the token, market activity began to shift. Technical indicators suggest that momentum is slowing. The Directional Movement Index (DMI) and Chaikin Money Flow (CMF) show signs of fading investor demand and increasing sell pressure.
DMI Chart Shows Bearish Crossover After Pi Network Venture Announcement
The Directional Movement Index (DMI) chart for Pi Network shows a clear shift in momentum following the Pi Network Venture fund announcement. The chart includes three lines: the Average Directional Index (ADX in red), the Positive Directional Indicator (+DI in blue), and the Negative Directional Indicator (−DI in orange).
Between May 12 and May 14, the ADX dropped from around 72 to 35.46. ADX values above 25 signal a strong trend, and this sharp decline indicates weakening trend strength.
The +DI, which reflects buying strength, fell from 61 to 23.99. This drop shows reduced upward movement, suggesting that buyers have lost momentum.
At the same time, the -DI rose from 1.2 to 25.1093. This rise signals growing bearish pressure. The crossover, where -DI moves above +DI, indicates that sellers are now driving the price action.
These changes came just after the Pi Network Venture launch. The timing suggests that traders started closing positions following the recent rally. Despite the $100 million fund aiming to expand adoption, technical indicators show that buying interest has declined.
This DMI pattern points to a possible shift toward short-term correction. Without a recovery in +DI, bearish pressure may continue to dominate.
Chaikin Money Flow Turns Negative After Pi Network Venture Launch
The Chaikin Money Flow (CMF) chart for Pi Network shows a drop from 0.24 to -0.05 in two days. This shift marks a move from accumulation to distribution. CMF values above zero usually reflect buying pressure, while negative values indicate capital outflows.
The reversal occurred immediately after the Pi Network Venture fund announcement. The $100 million fund was designed to support adoption, but chart data shows that investor interest declined following the news.
The fall below zero suggests traders may have started taking profits after the recent 85% rally. Although -0.05 is not a strongly bearish value, the speed of the decline signals fading conviction.
The timing of the CMF drop highlights a potential mismatch between market sentiment and project announcements. Short-term holders may have used the Pi Network Venture news as an opportunity to exit. If the indicator continues to move lower, it could point to further distribution in the near term.
Pi Network Forms Bullish Falling Wedge on May 15
The PI/USDT 4-hour chart, published on May 15, 2025, shows that Pi Network has formed a falling wedge pattern. This formation appears after a steep price increase and typically signals a possible bullish breakout.
A falling wedge is a technical pattern where the price moves lower between two downward-sloping lines, with the highs and lows getting closer. It often suggests that selling is slowing and a reversal may happen.
In this case, the price of PI is moving between the two red trendlines. The pattern started forming after the price spiked to nearly $1.45 on May 12. Since then, PI has been declining gradually inside the wedge.
If the falling wedge confirms with a breakout above the upper red trendline, the price may rise by around 67%. That move would place the price near $1.46, the previous local high. This level is also marked on the chart.
The Relative Strength Index (RSI), a momentum indicator, is currently at 42.31. This value is below the neutral 50 level and shows that selling pressure is still stronger than buying. However, it’s not in oversold territory, which starts below 30.
At the same time, the 50-period Exponential Moving Average (EMA) stands at $0.9465. The current price is below this level, which means the trend is still weak. For a bullish breakout to gain strength, the price must move above both the wedge and the EMA.
Trading volume over the past few sessions has remained steady. The chart shows 19.55 million PI traded at the time of capture, suggesting that some traders are still active even during the consolidation.
For now, PI is trading at $0.8777. If the wedge breaks upward, the $1.46 level could act as the next target. However, if the price continues to fall, support may form near $0.80 or lower.