Pi Network (PI) Token Shows Signs of Recovery After Plunging 50%

Pi Network's native token (PI) is showing signs of recovery after experiencing high volatility in recent weeks. The cryptocurrency, which plunged nearly 50%

Pi Network's native token (PI) is showing signs of recovery after experiencing high volatility in recent weeks. The cryptocurrency, which plunged nearly 50% from May 12 to May 17, has begun to reverse its downtrend on the price charts.

Over the last four days, PI has gained 20%, with a 14% increase in the last 24 hours alone. The token currently trades at $0.84, marking a 30% gain over the past month.

Trading volume has climbed substantially, surging more than 150% to reach $548 million. This development comes after the recent price drop to $0.69 on May 17.

According to data from Coinalyze, bullish conviction is present but not overwhelming in the short term. Open Interest has risen by 17%, suggesting that speculative traders might be willing to go long as short-term performance turns bullish.

The funding rate remains just slightly above zero. Together, these metrics indicate that short-term expectations are positive but not overheated.

Technical Analysis Points to Cautious Optimism

On the daily chart, PI has pulled back below the 78.6% Fibonacci retracement level based on its rally to $1.6 earlier this month. The token recently broke through the $0.745 level, a local high from April, which shifted the market structure in a bullish direction.

The Relative Strength Index (RSI) sits in the neutral range at 54, indicating neither an overbought nor oversold condition. Major moving averages for the 10, 20, 30, and 50-day periods are all trending upward.

The Chaikin Money Flow (CMF) has stayed above +0.05 for the past ten days, and the Accumulation/Distribution indicator has also trended higher. These are two signs of strong buying pressure, resulting from the trading volume surge on May 11 and 12.

However, zooming in on the 4-hour chart reveals a local resistance zone at $0.9, which appears as a bearish order block. Volume indicators that were strongly bullish on the daily timeframe appear neutral on the 4-hour chart.

Project-Specific Challenges Could Limit Growth

Despite the positive price action, Pi Network faces several obstacles that could hamper its recovery above $1. Millions of users remain frustrated by mainnet migration and Know Your Customer (KYC) verification delays, which limit access and transfers, particularly in China.

The token is not listed on major exchanges like Coinbase or Binance. Even though the community voted for a Binance listing, the token has yet to appear on the exchange. Pi's market depth on platforms such as OKX remains below $100,000, limiting its growth potential.

Utility remains a concern. Without significant decentralized finance projects or applications, demand for PI is primarily speculative. A rally to $1.35 just before the $100 million Pi Network Ventures fund announcement on May 14 quickly reversed, highlighting the fragility of sentiment without real use cases.

More than 1.47 billion PI tokens are scheduled to unlock over the next year, which could increase selling pressure unless balanced by token burns or rising demand.

If buyers can maintain support near $0.74 and push through resistance at $0.90, a move back towards $1 is possible, especially if trading volume remains strong. However, if momentum fades and structural problems persist, PI could fall below $0.74 and trigger another downward trend.

Bitcoin's performance may also influence PI's trajectory, as BTC is currently setting new all-time highs. This positive market sentiment could help PI break past the $0.9 barrier in the coming days.