Pi Network's PI token has found a floor above the $0.073 support level after a steep weekly decline, with the upcoming Protocol v25 upgrade providing a fresh catalyst for traders. The token traded near $0.0779 on Thursday, recovering about 6% in the past 24 hours but still down over 20% for the week, according to CoinGecko data.
The broader crypto market remains subdued as Bitcoin consolidates around $64,000, limiting demand for smaller altcoins. PI's ability to hold recent lows has shifted focus to the network upgrade, which could reignite interest if adoption follows.
Protocol v25 Upgrade: Privacy-Focused Smart Contracts
Pi Network announced on July 15 that Protocol v25 will go live on July 22, introducing BN254 cryptography and Poseidon hashing. These additions enable zero-knowledge applications that process sensitive information without exposing data on public ledgers. The Pi Core Team stated that the upgrade will improve network stability, reliability, and the efficiency of privacy-preserving smart contracts, supporting a growing ecosystem of applications.
While the technical enhancements broaden the potential for decentralized applications, the actual impact on PI demand hinges on developer activity, ecosystem growth, and post-upgrade network performance. For now, the scheduled rollout provides a clear event after weeks of selling pressure.
Technical Analysis: Oversold but Not Yet Reversed
From a technical standpoint, PI has not confirmed a trend reversal despite early stabilization. The daily chart shows the token trading below its 20-, 50-, 100-, and 200-day exponential moving averages (EMAs), which remain in a bearish alignment. The 20-day EMA near $0.0986 is the first major resistance, followed by the 50-day EMA around $0.118. The 100-day and 200-day EMAs sit much higher at $0.138 and $0.182, respectively.
The daily Relative Strength Index (RSI) has dropped to approximately 16, placing PI in deeply oversold territory. Such readings often precede relief rallies after prolonged declines, but they do not guarantee a lasting uptrend. For context, similar oversold conditions have preceded recoveries in other assets, such as ZEC's surge past $550 after its Ironwood upgrade.
On the 4-hour chart, the Chaikin Money Flow (CMF) has moved back above zero, indicating that buying pressure is recovering after heavy liquidation earlier this week. However, price remains below all major moving averages on this timeframe, signaling that sellers still control the broader trend.
Support has been established between $0.073 and $0.074 after buyers repeatedly defended that zone. Holding above this range could allow PI to challenge immediate resistance near the 20-period EMA at $0.079, with further upside toward $0.087 if momentum strengthens after the Protocol v25 launch. Conversely, a failure to maintain support could lead to a retest of recent lows, especially if the upgrade fails to attract meaningful developer participation or broader market sentiment weakens.
Until PI reclaims key moving averages, the current price action is better characterized as a stabilization phase rather than the start of a confirmed bullish trend. Investors should monitor the upgrade's impact on network activity and developer engagement for signs of sustained demand.
This article is for informational purposes only and does not constitute financial advice.
