Pi Network Price Forecast: Downside fears persist as recent gains lack momentum

• Pi Network edges higher on Monday, holding the key support at $0.0839.
• The Pi Core Team released a new Node upgrade on Saturday, aimed at advancing distributed computing capabilities.
• The technical outlook for PI is mixed, with price consolidating amid a lack of decisive momentum.

Pi Network (PI) edges higher on Monday, signaling that bulls are defending the $0.0839 support floor after two consecutive days of losses. The Pi Core Team released a new Node upgrade on Saturday focused on advancing its distributed computing capabilities. The technical outlook for PI is mixed as momentum remains indecisive. 

Could Pi Network regain its retail demand?

Pi Network has emerged as a highly speculative crypto asset, driven by broader market conditions, community strength, and retail demand. CoinMarketCap’s Fear and Greed Index at 38 on Monday signals reduced risk appetite among crypto investors amid renewed tensions between Israel-Lebanon and US-Iran, as previously reported by FXStreet.

On the other hand, the community and retail expectations are underpinned by its potential ecosystem growth to cater to its Know Your Customer (KYC)-verified base of 18 million users. The recent release of the 0.6.2 Pi Node upgrade on Saturday marked a successful test of distributed computing capabilities across Pi Nodes, which could unlock further network utilities. Santiment data shows an uptick in Social Dominance and Volume on Sunday to 0.01% and 12, respectively, up from 0.009% and 8 on Saturday, suggesting a mild gain in social chatter.

On the derivatives side, CoinAnk data shows the PI futures Open Interest (OI) has dropped to $8.81 million, from $9.12 million on Friday, suggesting a reduced notional value of active contracts. Declining OI in PI futures reflects a steady reduction in leverage-driven exposure, signaling reduced investor interest.

Technical outlook: Could Pi Network avoid deeper losses?

Pi Network maintains a bearish near-term bias as its price consolidates below $0.0900 following a bullish breakout of a falling-channel pattern on the daily chart. From a technical perspective, the lack of follow-through on the upside in PI suggests weak demand.

At the time of writing, bulls defend the 78.6% Fibonacci retracement, measured over the recent downswing from $0.1341 to $0.0703, at $0.0839. A sustained break below this zone could threaten the broken trendline near $0.0786, where a decisive downside close could nullify the odds of a breakout rally.

Momentum on the daily chart aligns with weak buying sentiment, as the Moving Average Convergence Divergence (MACD) stays marginally above its signal line, risking a bearish crossover. Meanwhile, the Relative Strength Index (RSI) at 45 points to only modest, range-bound momentum.

On the topside, initial resistance is located at the $0.1000 psychological threshold, reinforced by the 50% retracement at $0.1022, where any rebound might face its first meaningful supply zone. A stronger corrective advance could target the 23.6% retracement at $0.1190 as a more strategic barrier.

(The technical analysis of this story was written with the help of an AI tool. Know more.)