Hassan Maishera
TL;DR
-
Pi Network (PI) is holding above $0.0700 after falling nearly 20% over the past week.
-
Social activity has improved as Pi Launchpad begins testing SLICE and Test-Pi liquidity pools.
-
Technical indicators are mixed, with the RSI showing a bullish divergence while the broader trend remains bearish.
-
A recovery could target $0.0961 before challenging the key $0.1000 resistance level.
Pi Network (PI) is trading above $0.0700 on Wednesday after losing nearly 20% over the past seven days. Although the token remains under significant selling pressure, improving social engagement and ongoing decentralized finance (DeFi) testing have sparked hopes of a short-term recovery.
Despite these positive developments, the broader technical outlook continues to favor bears as PI remains trapped inside a descending price channel.
Launchpad Testing Drives Modest Increase in Social Activity
Pi Network has recorded a slight uptick in community engagement following continued testing of liquidity pools on the Pi Launchpad.
According to Santiment, PI's social volume climbed to 10%, up from 3% on Sunday, while social dominance increased to 0.01% from 0.003% over the same period.
The rise in online discussion comes after Pi Network introduced liquidity pool testing for SLICE and Test-Pi tokens on its testnet.
The new pools utilize an automated market maker (AMM) model, allowing token swaps based on the ratio of assets held within each liquidity pool. The initiative represents another step in expanding Pi Network's decentralized finance ecosystem ahead of broader ecosystem development.
Pi Network Technical Forecast: Bullish Divergence Offers Hope
From a technical standpoint, PI remains under pressure after its recent sharp decline. The token continues to trade within a parallel descending channel on the daily chart, reflecting the prevailing bearish trend.
However, price action has begun to stabilize after forming a Hammer candlestick, a pattern that often signals weakening selling pressure following an extended decline.
The Moving Average Convergence Divergence (MACD) remains marginally above its signal line, indicating that bearish momentum is easing, although buying interest has yet to strengthen meaningfully.
Meanwhile, the Relative Strength Index (RSI) is hovering near the oversold threshold around 30. Notably, the RSI is forming a higher low while price revisits its previous lows, creating a bullish divergence that could indicate fading downside momentum.
If buyers regain control, PI could rally toward the 127.2% Fibonacci extension at $0.0961, an area that capped the previous recovery attempt on July 20.
A sustained breakout above $0.0961 would then bring the descending trendline and the psychologically important $0.1000 level into focus. A decisive close above this resistance zone would strengthen the case for a broader bullish reversal.
On the downside, immediate support remains near the recent record low around $0.0700, with additional support at the 161.8% Fibonacci extension around $0.0679.
A daily close below $0.0679 would invalidate the near-term recovery scenario and could expose PI to another wave of selling toward new all-time lows.
