Technical indicators show cautiously optimistic outlook with neutral RSI at 54
Low market depth (below $100,000 on OKX) and lack of major exchange listings limit growth
1.47 billion PI tokens scheduled to unlock over the next year could increase selling pressure
Pi Network’s native token (PI) is showing signs of recovery after a volatile period in May, with bulls defending key support levels as the cryptocurrency attempts to reclaim higher price targets. The token currently trades at $0.84, up 8% in the last day and 30% over the past month.
The recent price action marks a significant turnaround from PI’s downtrend. Over the last four days, the token has gained 20%, accompanied by climbing trading volume. However, current volume levels still don’t match the surge seen a week ago when PI rallied 114% in six days.
Data from Coinalyze reveals that bullish conviction remains modest in the short term. While the price rose 14% in the last 24 hours with Open Interest climbing by 17%, the funding rate is just barely above zero.
These metrics suggest that short-term expectations are bullish but not overheated. The positive sentiment might be partially influenced by Bitcoin’s movements toward new all-time highs.
Daily trading volume has surged more than 150% to $548 million, indicating renewed market interest following a nearly 50% plunge from May 12 to May 17, when PI hit a low of $0.69.
The technical picture for PI presents a mixed but cautiously optimistic outlook. On the daily chart, PI has retraced below the 78.6% Fibonacci retracement level, based on the rally to $1.6 earlier this month.
This rally breached the $0.745 level, a local high from April, which shifted the market structure to bullish. However, the sudden rally and subsequent retracement means the daily timeframe doesn’t show strong bullish momentum.
The Relative Strength Index sits in the neutral range at 54, indicating neither overbought nor oversold conditions. The MACD remains above the zero line, though red histogram bars reflect the quick retracement.
The Chaikin Money Flow (CMF) has stayed above +0.05 over the past ten days, and the Accumulation/Distribution indicator has trended higher. These two signals suggest high buying pressure, resulting from the trading volume surge on May 11-12.
On the 4-hour chart, a local resistance zone appears at $0.9, forming a bearish order block. Volume indicators that were firmly bullish on the daily timeframe appear neutral on the 4-hour chart, with neither the CMF nor the A/D line showing heightened buying pressure.
Project-Specific Challenges Remain
Despite technical improvements, Pi Network faces several fundamental challenges that could limit its price recovery. The token still sits 77% below its all-time high of $2.99 set in February.
Millions of users remain frustrated by mainnet migration and know-your-customer verification delays, which limit access and transfers, particularly in China. The token also lacks listings on major exchanges like Coinbase or Binance, despite community support for such listings.
Market depth on platforms such as OKX remains below $100,000, restricting growth potential due to limited liquidity. Another concern is utility – in the absence of significant DeFi projects or dApps, demand for PI is primarily speculative.
A rally to $1.35 just before the $100 million Pi Network Ventures fund announcement on May 14 quickly reversed, demonstrating how fragile sentiment can be without real use cases.
More than 1.47 billion PI tokens are scheduled to unlock over the next year, which could increase selling pressure unless balanced by token burns or rising demand.
If buyers maintain support near $0.74 and break through resistance at $0.90, a move toward $1 becomes possible, especially with sustained trading volume. However, without addressing structural issues, PI could fall below $0.74, potentially triggering another downward trend.
Unless there’s a surge in demand in the short term, PI may struggle to rally past the $0.9 resistance level. However, a move beyond $0.9 with increased buying pressure could offer a buying opportunity for traders.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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