Key takeaways
- Pi Network (PI) is showing signs of recovery after several days of consolidation and easing of selling pressure.
- Rising open interest indicates that speculative traders are preparing for a potential rebound.
- The upcoming Stellar Protocol v25 mainnet upgrade and improving market sentiment could support PI’s recovery.
Pi Network (PI) posted modest gains on Friday after three straight sessions of sideways trading, suggesting selling pressure may be easing after a sharp correction earlier this month.
Although the symbol remains in a broader downtrend, significantly increased activity in derivatives and technical indicators in the oversold territory is fueling speculation that the PI may be poised for a short-term rebound.
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 shifts in investor sentiment.
After a sharp sell-off earlier this month, optimism has begun to improve as risk appetite stabilizes in the broader market.
Another potential catalyst is the Stellar protocol version 25 mainnet upgrade, scheduled for July 22, which could support sentiment across ecosystems connected to Stellar-based infrastructure.
At the same time, derivatives data indicate growing interest in speculation. According to CoinAnk, Pi Network open interest rose to $10.73 million on Friday from $10.44 million the previous day.
Open interest has steadily rebounded from the $9.11 million recorded on Monday, indicating that traders are gradually returning to the market after the recent correction.
The increase suggests that retail investors are starting to brace for a potential recovery, although sentiment remains relatively modest.
The PI remains in the oversold zone even though price action has stabilized
From a technical perspective, Pi Network continues to trade below the key resistance level of $0.0800, leaving the broader trend bearish.
However, the coin managed to hold near the lower border of the descending channel, where technical support is reinforced by the 161.8% Fibonacci extension level at $0.06793.
Holding above this area could provide the basis for a comfortable rally if buying momentum continues to build.
Technical indicators are starting to show early signs that the recent decline may be losing momentum.
The Relative Strength Index (RSI) has dropped to around 17, putting the PI in the oversold zone. While oversold readings do not guarantee a reversal, they often indicate that selling pressure has become extended.
At the same time, the Moving Average Convergence Divergence (MACD) is still below the zero line but is showing signs of weakening downward momentum, indicating that sellers may be losing control.
If the PI extends its recovery, the first resistance level is the 127.2% Fibonacci extension at $0.09613.
A stronger recovery will then encounter resistance near $0.110, where the upper border of the descending channel could limit further gains unless broader market sentiment improves.
On the downside, the 161.8% Fibonacci extension at $0.06793 remains the most important support level.
A decisive break below this area could expose the 227.2% Fibonacci extension near $0.01463, significantly increasing downside risk.
Currently, Pi Network’s oversold technical setup, combined with rising open interest and improving market sentiment, suggest that a short-term recovery is still possible, although the broader trend will remain bearish until key resistance levels are reclaimed.
