The Pi Network (PI) price is in a downward spiral, with a 6% decline on Monday following a 7% drop the day before. This trend is concerning for investors, especially with retail demand waning and Open Interest falling below $9 million. The technical outlook doesn't offer much solace, with a falling channel pattern suggesting a steep correction towards $0.075.
The situation is dire, with Pi Network's retail demand shrinking and Open Interest dropping to $8.48 million. This indicates a reduction in leveraged positions, which is not a good sign for the asset's stability. Sky Liu, founder of the Ju crypto exchange, warns that assigning a definitive price floor at this stage is speculative. He emphasizes that Pi Network is in an early phase of price discovery, where liquidity conditions, circulating supply dynamics, and market participation are more influential than traditional fundamental metrics.
Liu also highlights token unlocks as a significant driver of selling pressure. He predicts that if supply continues to outpace demand, downside pressure could persist, despite temporary technical rebounds. For traders considering buying the dip, Liu advises against making decisions solely based on past price declines. Instead, he recommends focusing on trend stabilization, sustained trading volume, and improving order book depth as more reliable indicators.
Looking ahead, the medium- to long-term valuation of PI will depend on ecosystem development, real user activity, and efficient price discovery. Until these factors become more apparent, elevated volatility is expected to be a normal part of the asset's trading profile. The Pi Network has been in a steep corrective trend since late April, forming a falling channel pattern on the daily chart.
The current price of PI is heading towards the lower support trendline near $0.075. If it slips below this level, the next key support zone is the 1.618% Fibonacci extension level at $0.0679. The momentum on the daily chart is heavy, with the Relative Strength Index (RSI) at 15 indicating intense selling pressure and oversold conditions. The Moving Average Convergence Divergence (MACD) is also descending into negative territory, reaffirming the firm sell-side pressure.
However, there is a glimmer of hope. A potential rebound from the support trendline near $0.075 could test the 1.272% Fibonacci extension level at $0.0961, followed by the $0.1000 psychological threshold. This scenario highlights the importance of monitoring key support levels and technical indicators in the volatile cryptocurrency market.
In the broader context of the cryptocurrency market, the introduction of Bitcoin spot Exchange-Traded Funds (ETFs) in January 2024 has been a significant development. ETFs offer investors exposure to cryptocurrencies without direct ownership, reducing risk and cost. However, they also come with drawbacks, such as the inability to have direct ownership of the asset and higher costs associated with active management. The approval of these ETFs has opened the door for institutional capital and mainstream investors to enter the market, potentially impacting the dynamics of cryptocurrencies like Pi Network.
