Key insights
The Pi Network coin has dropped to a critical level of $0.40, which could potentially trigger a recovery in August. However, the overall market sentiment will play a crucial role in determining the outcome.
Following a 190% surge in May, Pi Network [PI] has experienced consistent profit-taking over the past two months, resulting in a 75% decline from $1.67 to $0.40 on the charts.
The $0.40 price level has previously acted as a significant support during dumps in April and June. The question now is whether it will hold this time and pave the way for a reversal in August.
Anticipating a shift in selling pressure
Source: PI/USDT, TradingView
The SuperTrend signal on the daily charts continues to indicate a ‘sell’ rating for PI, remaining unchanged for the past two months. However, the RSI is nearing the oversold territory, suggesting a possible exhaustion in selling pressure.
Both technical indicators surged during the May bull run, indicating a potential reversal of the downtrend. If a positive pivot occurs, the immediate recovery targets could be $0.67 or $1 (50% Fib level), offering a potential gain of 60% or 150% if achieved.
On the flip side, failing to hold the $0.40 support could diminish the chances of a recovery and empower bears to push the altcoin towards $0.09.
Decline in social engagement
Source: Santiment
The social volume and market interest in PI have been on a downward trend since May. Attempts to break this trend in mid-July did not lead to a substantial rally for the token.
Moreover, the weighted market sentiment has been predominantly negative over the past couple of months.
Source: Coinalyze
In summary, PI’s price has reached a crucial support level at $0.40, historically associated with potential reversals. While indicators suggest seller exhaustion may be near, the broader market sentiment will be a key factor in determining a strong rebound.
Disclaimer: The information provided is the writer’s opinion and does not constitute financial, investment, trading, or other advice.
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