Key takeaways
Pi Network coin eased to a key level at $0.40, one that could trigger a rebound in August. However, will the broader market sentiment offer the needed boost?
After exploding by 190% in May, Pi Network [PI] saw persistent profit-taking over the past two months. This resulted in a 75% fall from $1.67 to $0.4 on the charts.
However, the $0.40-price level also doubled as a key support that eased April and June’s dumps. Will it hold this time round and allow a reversal in August?
Is seller exhaustion incoming?
Source: PI/USDT, TradingView
On the daily charts, the SuperTrend signal was still on a firm ‘sell’ rating for PI. The sell signal has remained unchanged for the past two months. On the contrary, the RSI was close to the oversold zone, hinting at potential seller exhaustion.
Both the technical indicators exploded higher during the May bull run. As such, a positive pivot could suggest a likely reversal of the downtrend. The immediate recovery targets would be $0.67 or $1 (50% Fib level), with a potential 60% or 150% gain if hit.
However, losing the $0.4 support would dent the possibility of the recovery and embolden bears to drag the altcoin to $0.09.
A fall in social volume
The market vibe was also off, as of press time. PI’s social volume or market interest across social networks has been on a downtrend since May.
A failed attempt to break the downtrend in mid-July didn’t spark a strong enough rally for the token.
Additionally, weighted market sentiment has been mostly negative over the past two months.
Source: Santiment
At the time of writing, the derivative markets also underlined muted interest, as shown by the low funding rates and declining Open Interest (OI).
In fact, the altcoin’s OI has dipped from nearly $17 million to below $12 million since late May.
Source: Coinalyze
To put it simply, PI’s price has plunged to its $0.4 support, a level that has triggered previous reversals. While key technical indicators revealed that seller exhaustion may be close, a strong rebound would be determined by broader market sentiment.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
