Key Takeaways
The Pi Network token has not been kind to long-term holders- it is down 87% from its February 2025 highs at $3. Does the breach of a short-term resistance level mark the beginning of a recovery?
Pi Network [PI] gained 4.73% in the past 24 hours, at press time, undoing last weekend’s losses.
The move offered traders a short-term opening, but swing traders and long-term investors needed caution, especially with Bitcoin [BTC] dipping under $110K.
Pi Network token is in a long-term downtrend, but….
Source: PI/USDT on TradingView
The 1-day chart showed that the Pi Network token prices were in a steep downtrend. The pace of this downtrend has slowed down since late July. This was evidenced by the shallower lower lows that the price made over the past five weeks.
On top of that, the RSI climbed higher to 48.83. This was close to the neutral 50 mark, and climbing past 50 would be an early sign of a momentum shift.
However, past price action urged caution. In early August, PI’s RSI also climbed past 50 before the token rallied to $0.435. And within 16 days, bulls lost 23%.
Meanwhile, the OBV has not made a higher high. This showed that accumulation was not underway in any significant capacity in the spot market.
Ultimately, this lack of buying pressure meant that a PI recovery was not imminent.
Lower timeframe hints at short-term upside
Source: PI/USDT on TradingView
While the 1-day timeframe looked dicey for the bulls, the 2-hour chart showed a short-term bullish reversal underway.
The market structure was bullish in this lower timeframe. Additionally, a bearish order block and the local resistance level at $0.368 (cyan box) were breached.
At the time of writing, it was retested as support.
Naturally, this breakout aligned with strong RSI readings. On top of that, the OBV trended higher over the past four days, reflecting steady buying pressure since the $0.335 low on Monday, the 25th of August.
If the bulls can defend the $0.368 area as support, further gains would be possible. However, weakness in Bitcoin poses a concern.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
