Pi Network (PI) has extended its decline, falling nearly 10% in the past 24 hours as selling pressure persists despite the announcement of a major protocol upgrade. The token is now trading below $0.0750, approaching a critical support zone near $0.0730.
The latest leg lower comes after more than three weeks of sustained bearish momentum that has erased over 40% of PI's value. The decline has occurred even as the Pi Core Team announced that the mainnet will be upgraded to Stellar Protocol version 25 on July 22.
Protocol Upgrade Fails to Ignite Rally
On Wednesday, Pi Network revealed that its mainnet will transition to Stellar Protocol v25, an update designed to enhance network stability, reliability, and support more efficient, privacy-preserving smart contracts. Because Pi Network is built on Stellar's blockchain infrastructure, the upgrade represents a step toward adopting newer protocol features and moving closer to Stellar Protocol v26, which is expected to introduce full smart contract functionality on the Pi mainnet.
Despite the positive development, market reaction has been muted. The announcement did not immediately alter network capabilities, and traders appear to be focusing on the persistent bearish technical setup rather than long-term fundamentals. This pattern mirrors recent events in other crypto assets where protocol upgrades failed to spark rallies, such as Chainlink's Robinhood tokenization deal and TRX's direct bank transfer launch.
Technical Indicators Point to Oversold Conditions
On the 4-hour chart, the Relative Strength Index (RSI) has fallen to approximately 32, approaching oversold territory. Such readings often suggest that selling pressure may be nearing exhaustion, potentially setting the stage for a relief rally if buyers step in.
However, the Moving Average Convergence Divergence (MACD) remains below its signal line and in negative territory, confirming that the broader bearish trend is still intact despite weakening downside momentum. PI continues to trade along the lower boundary of a falling channel, a technical pattern that can precede bullish reversals if support holds.
Key Levels to Watch
- Support: The immediate support level is at $0.0730. A decisive break below this level could open the door to further declines toward $0.0679. A daily close below $0.0679 would confirm a bearish breakdown from the falling channel.
- Resistance: Bulls need to reclaim the $0.0961 level to signal a meaningful trend reversal. A breakout above this resistance could pave the way for a broader recovery, with higher resistance levels coming into focus if momentum strengthens.
For context, similar technical patterns have played out in other markets recently, such as gold bouncing above $4,000 after oversold conditions, though each asset's fundamentals differ.
Outlook Remains Fragile
Pi Network remains in a precarious technical position. The Stellar Protocol v25 upgrade has failed to stabilize sentiment, and while oversold momentum indicators hint at potential exhaustion among sellers, the absence of a strong bullish catalyst leaves the token vulnerable to further downside.
Until buyers can establish a decisive uptrend and reclaim the $0.0961 resistance, PI is likely to remain in a consolidation phase. Traders should monitor the $0.0730 support closely, as a breakdown could accelerate losses toward the $0.0679 zone.
This article is for informational purposes only and does not constitute financial advice.
