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- Pi Network (PI) is showing signs of recovery after several days of consolidation and reduced selling pressure.
- Rising Open Interest indicates that traders are only thinking of restocking.
- Upgrading Stellar Protocol v25 mainnet and changing market sentiment can help PI recovery.
Pi Network (PI) posted modest gains on Friday after three consecutive quarters of sideways trading, suggesting that sales may ease following a correction earlier this month.
Although the indicator is still very low, the increase in derivatives and more positive technical indicators are adding to the sentiment that PI may be preparing for a near-term rebound.
Speculative demand begins to increase
The Pi Network remains one of the most speculative of the crowd-sourced cryptocurrency market, making its value highly sensitive to changes in business sentiment.
After the big sell-off earlier this month, the outlook has started to improve as market volatility stabilizes.
Another feature is the Stellar Protocol version 25 mainnet upgrade, scheduled for July 22, which will help support the entire ecosystem of Stellar’s infrastructure.
Meanwhile, derivatives point to the growth of speculative interest. According to CoinAnk, Pi Network Open Interest rose to $10.73 million on Friday from $10.44 million the previous day.
Open Interest has recovered slightly from the $9.11 million recorded on Monday, indicating that traders are slowly returning to the market after the recent correction.
This increase indicates that retailers are starting to recover, although the impact remains low.
PI is still on sale despite stabilizing prices
From a technical point of view, Pi Network continues to trade below the resistance level of $0.0800, leaving a strong momentum.
However, the indicator has managed to hold close to the lower limit of the downtrend, where technical support is supported by the 161.8% Fibonacci retracement level at $0.06793.
Holding above this position may provide the basis for a rally in support if interest rates rise.
Technical indicators are starting to show the first signs that the recent decline may be losing momentum.
The Relative Strength Index (RSI) has dropped to 17, placing PI deep in oversold territory. Although higher readings do not guarantee a reversal, they often indicate that sales have declined.
At the same time, the Moving Average Convergence Divergence (MACD) remains below the zero line but shows a weakening trend, which means that the sellers are losing control.
If PI extends the recovery, the first resistance level is the 127.2% Fibonacci retracement at $0.09613.
A strong pullback could face resistance near $0.110, while the upper limit of the downtrend could limit further gains unless the broader market continues to improve.
Below that, the 161.8% Fibonacci retracement at $0.06793 remains a key support level.
A definite break below could indicate a retracement of the 227.2% Fibonacci retracement near $0.01463, adding downside risk.
Meanwhile, the Pi Network’s high trading performance, combined with rising Open Interest and improving market sentiment, indicate that a temporary recovery is still possible, although the spread will remain high until major resistance levels are returned.
