Pi Network Faces Challenges Amid Crypto Market Recovery
Pi Network (PI) is lagging behind in the recent crypto market rebound, with a 10% drop over the past week. Currently trading at $0.5832, the token is about 80% below its all-time high of $2.99.
Despite this, trading volume has surged by nearly 35% in the last day, reaching $128 million. This indicates renewed interest from traders, which could signal a potential price movement.
The 50-day simple moving average (SMA) at $0.82 remains a meaningful hurdle. PI is still below this line, and other short-term moving averages also show a bearish trend. The relative strength index (RSI) is at 38.7, suggesting the token is approaching oversold territory.
- Key indicators like the moving average convergence/divergence (MACD) hint at buyers entering the market.
- Bollinger Bands show PI near the lower band, indicating it may be oversold.
A bounce could push the price toward the middle band near $0.75. Breaking above the 50-day SMA with strong volume could lead to a rally toward $0.85–$0.90. A move past $1.00 would shift sentiment positively.
Though,if prices stay below key moving averages,PI could retest support near $0.55 or fall to $0.45. Token dilution is a major risk, with 131 million new tokens expected to unlock monthly for the next year. This could impact the price unless demand increases or the team takes action.
A token burn could help ease investor concerns. The Pi Foundation owns over 70 billion PI tokens, valued at more then $40 billion. Listing on major exchanges like Coinbase or Binance could also unlock new demand and liquidity.
For now, Pi Network’s ability to turn the 50-day MA into support may be the first sign of returning strength.
