Pi Network (PI) Token Shows Signs of Recovery After a Volatile Period

Pi Network's native token (PI) is showing signs of recovery after a volatile period in May, with bulls defending key support levels as the cryptocurrency attempts to reclaim higher price targets.

Pi Network's native token (PI) is showing signs of recovery after a volatile period in May, with bulls defending key support levels as the cryptocurrency attempts to reclaim higher price targets.

What Happened: The token is currently trading at $0.84, showing a 7.8% increase in the last 24 hours and a 30% rise over the past month. This marks a significant turnaround from PI's downtrend, which saw the token decline by 50% to hit a low of $0.69 on May 17 after a brief rally to $1.6 earlier in the month.

Over the last four days, PI has gained 20%, accompanied by trading volume climbing. However, current volume levels don't match the surge seen a week ago when PI rallied 114% in six days.

Data from Coinalyze reveals that bullish conviction is still modest in the short term. While the price rose by 14% in the last 24 hours with Open Interest increasing by 17%, the funding rate is just slightly above zero. These metrics suggest that short-term expectations are bullish but not overheated.

The positive sentiment might be partially influenced by Bitcoin's (BTC) movements toward new all-time highs.

Daily trading volume has surged by more than 150% to $548 million, indicating renewed market interest following a nearly 50% plunge from May 12 to May 17, when PI hit a low of $0.69.

Technical Outlook For PI: The technical picture for PI presents a mixed but cautiously optimistic outlook. On the daily chart, PI has retraced below the 78.6% Fibonacci retracement level, based on the rally to $1.6 earlier this month.

This rally breached the $0.745 level, a local high from April, which shifted the market structure to bullish. However, the sudden rally and subsequent retracement mean the daily timeframe doesn't show strong bullish momentum.

The Relative Strength Index sits in the neutral range at 54, indicating neither overbought nor oversold conditions. The MACD remains above the zero line, although red histogram bars reflect the quick retracement.

The Chaikin Money Flow (CMF) has stayed above +0.05 over the past ten days, and the Accumulation/Distribution indicator has trended higher. These two signals suggest high buying pressure, resulting from the trading volume surge on May 11-12.

On the 4-hour chart, a local resistance zone appears at $0.9, forming a bearish order block. Volume indicators that were firmly bullish on the daily timeframe appear neutral on the 4-hour chart, with neither the CMF nor the A/D line showing heightened buying pressure.

Project-Specific Challenges Remain: Despite technical improvements, Pi Network faces several fundamental challenges that could limit its price recovery.

The token is still sitting at 77% below its all-time high of $2.99 set in February. Millions of users are still frustrated by mainnet migration and know-your-customer verification delays, which limit access and transfers, especially in China.

The token also lacks listings on major exchanges like Coinbase or Binance, despite community support for such listings. Market depth on platforms such as OKX remains below $100,000, restricting growth potential due to limited liquidity.

Another concern is utility - in the absence of significant DeFi projects or dApps, 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, demonstrating how fragile sentiment can be 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 break through resistance at $0.90, a move toward $1 becomes possible, especially with sustained trading volume. However, if sellers regain control and push the price below $0.74, it could trigger another downward trend.

Unless there's a surge in demand in the short term, PI may struggle to rally past the $0.9 resistance level. However, a move beyond $0.9 with increased buying pressure could offer a buying opportunity for traders.