Pi Network (PI) continued its downward trajectory on Wednesday, marking a fifth consecutive daily decline as the token approaches the psychologically important $0.10 support zone. The cryptocurrency has shed nearly 7% in the past 24 hours, mirroring broader weakness across digital asset markets.
Derivatives Data Reflects Weakening Sentiment
On-chain and derivatives metrics paint a cautious picture for PI. According to CoinAnk, open interest in PI futures has dropped to $9.75 million, down from $10.88 million the previous day. This decline suggests traders are closing positions rather than initiating new ones, indicating reduced conviction in the token's near-term prospects.
Meanwhile, the funding rate for PI perpetual swaps has turned sharply negative at -2.1546%. Negative funding rates imply that short sellers are paying a premium to maintain their positions, reinforcing bearish expectations. Together, these signals point to fading retail participation and growing caution among market participants.
Technical Analysis: $0.10 Support in Focus
On the 4-hour chart, PI is approaching a critical technical support near $0.1010. A breakdown below this level could expose the token to a test of the $0.1000 psychological barrier for the first time in this correction. If that support fails, the next major downside target lies at $0.0867.
Momentum indicators remain firmly bearish. The Relative Strength Index (RSI) is hovering near 31, indicating oversold conditions. While such readings can sometimes precede a bounce, oversold alone is not a reliable reversal signal. The Moving Average Convergence Divergence (MACD) remains below both its signal line and the zero level, confirming that bearish momentum continues to dominate.
For any recovery to gain traction, PI would need to reclaim the 50-day exponential moving average (EMA) near $0.1324, followed by the R1 pivot point at $0.1397. Until then, the technical setup favors further downside.
Broader Market Context
The latest decline comes amid renewed geopolitical tensions between the United States and Iran, which have added uncertainty across risk assets. The broader crypto market has also seen pullbacks, with Bitcoin slipping below $63,000 as traders weigh the impact of these developments.
Other altcoins have faced similar headwinds. For instance, BONK slid 8% after a $20 million treasury exploit, highlighting the fragile sentiment in the crypto space.
Key Levels to Watch
- Immediate support: $0.1010 (S1 pivot point)
- Next support: $0.0867
- Immediate resistance: $0.1324 (50-day EMA)
- Next resistance: $0.1397 (R1 pivot point)
Investors should monitor whether PI can hold above $0.1010 in the coming sessions. A decisive break below this level could accelerate selling pressure, while a bounce from support would require a pickup in buying volume to confirm any reversal.
This article is for informational purposes only and does not constitute financial advice.
