Hassan Maishera
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Pi Network (PI) fell 4% and remains under pressure below $0.1300.
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Extreme fear in the crypto market is reducing demand for riskier altcoins.
Pi Network (PI) remained under pressure on Wednesday, trading below $0.1300 after posting a 4% decline in the previous session.
The token continues to face strong selling activity as risk-off sentiment across the broader cryptocurrency market weighs heavily on investor appetite.
From a technical perspective, PI must maintain support above the $0.1280 region to avoid a deeper correction that could send the token back toward its all-time low of $0.1184.
Risk-Off Market Environment Pressures Pi Network
Pi Network's weakness reflects broader caution across the digital asset market, where investors are increasingly reducing exposure to riskier cryptocurrencies.
The Crypto Fear and Greed Index currently stands at 20, signaling "Extreme Fear" among market participants. Such conditions often drive capital away from lower-market-cap assets and toward more established cryptocurrencies such as Bitcoin (BTC) and other large-cap tokens.
The deteriorating sentiment has limited buying interest in speculative assets, leaving Pi Network particularly vulnerable to further downside pressure.
PI Retests Critical Support Zone
After Tuesday's decline, PI is trading slightly below the $0.1300 level, remaining firmly within a broader bearish trend.
The token continues to trade beneath its key moving averages, including the 50-day Exponential Moving Average (EMA) at $0.1440 and the 200-day EMA near $0.1890. This positioning reinforces the prevailing downtrend despite recent attempts to stabilize from local lows.
A notable technical development is the token's secondary retest of a previously broken resistance trendline near $0.1250. This area now serves as a crucial support zone and could determine the next major directional move.
The $0.1250 support area represents a key battleground between buyers and sellers. A decisive daily close below this level could accelerate bearish momentum and expose the June 6 low at $0.1184.
If that support fails to hold, Pi Network could enter price discovery to the downside and establish new record lows.
With market sentiment remaining fragile, traders are closely monitoring whether buyers can defend this critical zone.
Technical indicators suggest that while selling pressure may be easing slightly, bullish momentum remains limited. The Relative Strength Index (RSI) is hovering around 39 on the daily chart.
Although this reflects a modest recovery from oversold conditions, the indicator remains below the neutral 50 mark, signaling that bears continue to hold the advantage.
Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains marginally positive but is gradually contracting. This indicates that the recent upside momentum is fading and that buyers may be losing strength.
For Pi Network to improve its short-term outlook, bulls must reclaim important resistance levels.
The first major obstacle sits at the 50-day EMA around $0.1440. A daily close above this level would help ease immediate bearish pressure and signal a stronger recovery attempt.
Beyond that, the 200-day EMA near $0.1890 represents a much more significant barrier. A sustained move above this level would be required to shift the broader market structure from bearish to bullish.
Until then, Pi Network remains vulnerable to further downside, with traders focused on whether the $0.1250 support area can prevent a retest of the token's record low.
