Key takeaways
- Pi Network (PI) holds above $0.07500 after more than two weeks of sustained selling pressure.
- Improving cryptocurrency market sentiment following lower US inflation has boosted speculative interest in the PI.
- PI’s open interest rose from $9.11 million to $12.14 million, indicating renewed trader participation.
Pi Network (PI) traded above $0.07500 on Wednesday, showing early signs of stabilization after more than two weeks of sustained losses.
The token’s recovery comes as broader cryptocurrency markets rebound after lower-than-expected US inflation data, improving investor sentiment and encouraging renewed interest in high-risk digital assets.
Although the indicator is still in a broader downtrend, technical indicators indicate that the downward momentum may be weakening.
Improving market sentiment enhances risk appetite
The latest US Consumer Price Index (CPI) report helped ease concerns about additional interest rate hikes by the Federal Reserve, reducing pressure on risky assets, including cryptocurrencies.
As market sentiment improved, investors showed a greater desire to return to speculative assets such as Pi Network.
The CoinMarketCap Cryptocurrency Fear and Greed Index rose to 35 on Wednesday from 28 on Monday, reflecting a marked decline in market fears and improved investor confidence.
Historically, higher risk appetite has often supported increased trading activity in speculative cryptocurrencies.
Derivative data indicates growing interest in the Pi Network. According to CoinAnk, open interest for PI futures rose from $9.11 million to about $12.14 million over the past day.
The sharp increase indicates that traders are opening new positions rather than closing existing positions, indicating renewed confidence and stronger speculative demand.
While higher open interest alone does not guarantee higher prices, it often supports increased market liquidity and stronger price momentum when accompanied by improving sentiment.
Pi Network Technical Analysis: Can PI Reclaim $0.1000?
From a technical perspective, Pi Network is trying to build a base near $0.07500, where a descending support trend line that forms part of a downward channel continues to hold.
A Doji candlestick formed near this support during the previous trading session, indicating indecision between buyers and sellers and possibly signaling the beginning of a short-term reversal.
The 161.8% Fibonacci extension at $0.06793, as measured from the low between $0.1998 and $0.1183, reinforces this support area and increases the likelihood of a technical recovery.
If buying momentum strengthens, the PI can target the following resistance levels:
- $0.09613 – 127.2% Fibonacci extension
- $0.1000 – psychological resistance level
A decisive move above $0.09613 would significantly improve the short-term outlook and increase the likelihood of a recovery towards $0.1000.
Although Pi Network is still within a broader downtrend, momentum indicators suggest that downward pressure may have been exhausted.
The Relative Strength Index (RSI) has dropped to around 21, putting the token in the oversold zone. Such readings often indicate that selling has become excessive and that a comfortable rally may emerge if buyers return.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator remains below its signal line, confirming that the broader trend remains bearish. However, the indicator also indicates that the downward momentum may be weakening after the recent decline.
The most important downside support remains the 161.8% Fibonacci extension at $0.06793.
A daily close below this level would invalidate the current bounce scenario and could trigger a new phase of price discovery to the downside.
As long as the PI remains above this support, the possibility of a recovery towards $0.09613 and eventually $0.1000 remains.
