Pi Network Token Falls 12% Testing $0.3700 Support After Brief Rally

Pi Network’s native token, PI, has recently experienced a sharp 12% decline from its Sunday peak, testing the critical $0.3700 support level [1]. The drop follows a brief rally that pushed the token to a recent high of $0.4661, after which it has lost over 3% in Tuesday’s trading session alone. As of press time, PI trades at $0.3884, below both the psychological $0.4000 level and the 50-period Exponential Moving Average [1].

The price action reflects the token’s volatility since its February mainnet launch. Technical indicators present a mixed picture: while the Relative Strength Index (RSI) has improved from 19.7 to 52, it still stands at 43 on the 4-hour chart, suggesting further correction may be necessary before the market reaches oversold conditions [1]. Meanwhile, the Moving Average Convergence Divergence (MACD) indicator shows a declining trend, with bearish momentum increasing as the red histogram bars remain below the zero line [1].

A notable feature of the current chart pattern is the formation of a large descending wedge, often seen as a precursor to a bullish breakout when trend lines converge. This structure, combined with the RSI’s gradual recovery, offers a counterbalance to the bearish price action [1]. However, for this bullish scenario to unfold, PI must reclaim the $0.4000 level, which would allow for renewed momentum and a potential test of the 200-period EMA at $0.4253 [1].

The $0.3700 support is particularly significant as it previously served as the neckline of an Adam and Eve pattern, which failed to maintain the breakout rally above the 200-period EMA [1]. A breakdown below this level could trigger a further 10% decline, potentially testing the $0.3334 support marked by last Wednesday’s low [1].

In addition to its immediate price action, several potential catalysts could influence PI’s near-term trajectory. A listing on a major centralized exchange such as Binance or Coinbase could generate fresh momentum by increasing the token’s exposure and liquidity [1]. Developer announcements related to increased decentralization and future token sales could also stimulate investor confidence in the project’s long-term roadmap [1]. Broader market movements, particularly a continued rally in Bitcoin, may also benefit PI as part of a general altcoin upswing [1].

Despite the recent pullback, the overall market environment remains fluid. Trading volume for PI has decreased by nearly 30% over the past 24 hours, indicating weaker participation and a cautious stance from traders [1]. This mirrors a similar pattern observed in mid-July, when the token reversed from the 200-period EMA and experienced a 10% correction after invalidating its neckline support [1].

As the Pi Network token continues to test key levels, its performance will largely depend on whether it can stabilize above $0.3700 or face renewed selling pressure. Market observers remain divided on the near-term outlook, with no definitive forecasts emerging from analysts given the token’s still-developing market dynamics [1].

Source:

[1] Blockonomi, Pi Network (PI) Price: Token Tests $0.3700 Support After 12% Decline From Sunday Peak, [https://blockonomi.com/pi-network-pi-price-token-tests-0-3700-support-after-12-decline-from-sunday-peak/](https://blockonomi.com/pi-network-pi-price-token-tests-0-3700-support-after-12-decline-from-sunday-peak/)