Key Takeaways
- Pi Network (PI) is showing signs of recovery after several days of consolidation and easing selling pressure.
- Rising Open Interest suggests speculative traders are anticipating a potential rebound.
- The upcoming Stellar Protocol v25 mainnet upgrade and improving market sentiment could support a recovery in PI.
Pi Network (PI) posted modest gains on Friday after three consecutive sessions of sideways trading, suggesting that selling pressure may be easing after a sharp correction earlier this month.
Although the token remains in a broader downtrend, increased derivatives activity and severely oversold technical indicators are fueling speculation that PI could be staging a near-term bounce.
Speculative demand begins to strengthen
Pi Network remains one of the most speculative community-driven assets in the cryptocurrency market, making its price particularly sensitive to changes in investor sentiment.
After a sharp sell-off earlier this month, optimism is starting to improve as broad market risk appetite stabilizes.
Another potential catalyst is the Stellar protocol version 25 mainnet upgrade scheduled for July 22nd. This can support sentiment across the ecosystem connected to Stellar-based infrastructure.
Meanwhile, derivatives data suggests speculative interest is increasing. According to CoinAnk, Pi Network open interest increased to $10.73 million on Friday from $10.44 million a day earlier.
Open interest has steadily recovered from the $9.11 million recorded on Monday, indicating that traders are gradually returning to the market after the recent correction.
This increase suggests that retail investors are starting to take a stance on the possibility of a recovery, but confidence is relatively minimal.
Despite price stabilization, PI remains oversold
From a technical perspective, Pi Network continues to trade below the key $0.0800 resistance level, keeping the broader trend bearish.
However, the token held near the lower limit of the descending channel with technical support strengthening towards the 161.8% Fibonacci extension level at $0.06793.
If buying momentum continues to build, it could provide the basis for a relief rally beyond this area.
Technical indicators are starting to show early signs that the recent downtrend’s momentum is waning.
The Relative Strength Index (RSI) fell to around 17, putting the PI deep in oversold territory. Oversold readings do not guarantee a reversal, but they often indicate increased selling pressure.
At the same time, the moving average convergence divergence (MACD) is still below the zero line but is showing signs of weakening bearish momentum, suggesting that sellers may be losing control.
If PI extends its recovery, the first resistance level is the 127.2% Fibonacci extension at $0.09613.
A stronger bounce would face resistance near $0.110, and the upper limit of the downward channel could limit further upside unless overall market sentiment improves.
The downside is that the 161.8% Fibonacci extension at $0.06793 remains the most important support level.
A decisive break below that area could expose the 227.2% Fibonacci extension near $0.01463, significantly increasing downside risk.
For now, the Pi Network’s highly oversold technical setup, combined with rising open interest and improving market sentiment, suggests that a near-term recovery is still possible, although the broader trend will remain bearish until key resistance levels are recovered.