Pi Network’s token price has slipped below a crucial support level of $0.143, signaling weakening demand amid a broader crypto market sell-off.
On June 3, a massive $1.8 billion liquidation wave swept through the market, driving investor sentiment into the “extreme fear” zone and pressuring Pi Coin toward its all-time low near $0.130.
While the network’s decentralized app (dApp) activity is gaining momentum, this increased usage has yet to translate into price strength. The disconnect between on-chain engagement and market demand highlights the challenges Pi Network faces in recovering from recent losses.
Price Breakdown and Technical Signals
Pi Coin’s drop below the $0.143 support level marks a bearish technical outlook, echoing a similar breakdown in February that preceded a slide to its historical low around $0.130. Currently, the token is trading close to this critical floor, which also serves as a psychological barrier for investors.
Technical indicators reveal a nuanced picture. The Awesome Oscillator shows a positive divergence, with shrinking red bars over the past five days suggesting selling momentum is easing.
Meanwhile, the Relative Strength Index (RSI) hovers near 32, approaching oversold territory where buyers often emerge. However, these signals alone do not guarantee a rebound without increased buying volume.
Declining Open Interest Reflects Investor Caution
Open interest data further underscores the market’s cautious stance. Since May 6, open interest in Pi Network contracts has dropped from $35.42 million to $26.38 million by June 3, a decline of $9.4 million.
This reduction indicates traders are closing positions or being liquidated rather than opening new ones, reflecting diminished appetite for risk in the short term.
Historical trends support this correlation: between March 20 and 27, open interest fell from $30.68 million to $20.83 million, coinciding with Pi Coin’s price decline from $0.20 to $0.17. Without a rebound in open interest and retail demand, a strong price recovery appears unlikely.
Growing dApp Engagement and Staking Offer Long-Term Optimism
On the positive side, Pi Network’s ecosystem is showing signs of vitality. The launch of CiDi Games has boosted dApp activity, attracting over 81,000 users and increasing the network’s visibility in the Web3 gaming space.
Additionally, 3.1 million Pi Coins are currently staked, which could reduce circulating supply pressure and provide price support if demand returns.
However, the current increase in network activity has not yet translated into stronger price action. Retail demand remains the key driver for any sustained upward move, and until it picks up, price gains may be limited despite the encouraging on-chain metrics.
Key Levels to Watch for Pi Coin
The immediate support level to monitor is $0.130. A close below this threshold could trigger a retest of the all-time low and signal further downside risk.
Conversely, reclaiming $0.143 would offer the first sign of stabilization, with $0.153 as a more robust resistance level that must be surpassed to confirm a bullish reversal.
Ultimately, Pi Network’s near-term outlook hinges on renewed retail interest and increased open positions. Until these factors improve, the token faces continued pressure despite promising developments in its ecosystem.
