TLDR
- Pi Network (PI) currently trades at $0.84, up 8% in 24 hours and 30% over the past month
- Daily trading volume surged 150% to $548 million, showing renewed market interest
- PI remains 77% below its all-time high of $2.99 set in February
- Technical indicators show mixed but cautiously optimistic outlook
- Project faces challenges including mainnet migration delays, limited exchange listings, and lack of utility
Pi Network (PI) is showing signs of recovery after experiencing a turbulent period in May. The cryptocurrency, which had plunged nearly 50% from May 12 to May 17, hitting a low of $0.69, has begun to rebound on the price charts.
At the time of writing, PI trades at $0.84, marking an 8% increase in the last 24 hours and a 30% gain over the past month. This recovery comes after a difficult period for the token.
Daily trading volume has surged more than 150% to $548 million, indicating renewed market interest in the cryptocurrency. However, PI still sits 77% below its all-time high of $2.99 established in February.
The technical outlook for PI presents a mixed but cautiously optimistic picture. The relative strength index sits in the neutral range at 54, meaning there is neither an overbought nor oversold condition present.
Momentum indicators like the moving average convergence divergence show some weakness, displaying sell signals. However, the major moving averages for the 10, 20, 30, and 50-day periods are all trending upward.
Project-Specific Challenges
Despite the recent price gains, Pi Network continues to face several significant hurdles. Millions of users remain frustrated by mainnet migration and know-your-customer verification delays, which limit access and transfers, particularly in China.
The token lacks listings on major exchanges such as Coinbase or Binance. Even though the community voted overwhelmingly for a Binance listing, the token has yet to be added to the platform.
Pi’s market depth on platforms like OKX remains below $100,000, which restricts its growth potential. This limited liquidity creates a ceiling for how much the price can rise without facing selling pressure.
Another key obstacle is utility. In the absence of significant decentralized finance projects or decentralized applications, demand for PI remains 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 market sentiment can be without real use cases.
Adding to the pressure, more than 1.47 billion PI tokens are scheduled to unlock over the next year. This could increase selling pressure unless balanced by token burns or rising demand.
The buying pressure appears to be building, as shown by indicators like the Chaikin Money Flow (CMF) sitting above +0.05 over the past ten days. The Accumulation/Distribution (A/D) indicator has also trended higher, two signs of increased buying interest.
On the 4-hour chart, a local resistance zone sits at $0.90. This represents a bearish order block that could prove challenging for bulls to overcome without a surge in demand.
If buyers hold support near $0.74 and push through resistance at $0.90, a move back toward $1 becomes possible, especially if trading volume remains strong or a major exchange listing occurs.
However, if momentum fades and structural problems persist, PI could fall below $0.74 and trigger another downward trend, with the large upcoming token unlock adding to downward pressure.
Speculative traders appear to be bidding on PI in the short term. Data shows that the Open Interest climbed by 17% alongside the 14% price increase in the last 24 hours, suggesting that traders might be willing to go long as short-term performance turns bullish.
These expectations might be aided by Bitcoin seeking to set new all-time highs, potentially lifting the broader cryptocurrency market including PI.
For now, PI continues its recovery attempt with bulls defending key support levels. The cryptocurrency’s next moves will likely depend on its ability to overcome resistance at $0.90 and address the underlying project challenges.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
