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- Pi Network (PI) is settling above $0.07500 after more than two weeks of continuous trading.
- Improving crypto market sentiment following the US rate cut has fueled speculative interest in PI.
- PI’s open interest rose from $9.11 million to $12.14 million, indicating that investors have taken part.
Pi Network (PI) traded above $0.07500 on Wednesday, showing the first signs of stability after more than two weeks of continuous losses.
The benchmark’s recovery comes as broader cryptocurrency markets rebounded following a lower-than-expected drop in US inflation, improving investor sentiment and fueling renewed interest in the high-risk digital asset.
Although the PI remains very low, technical indicators suggest that the bearish force may be weakening.
Improving market sentiment increases appetite
The latest report on the US Consumer Price Index (CPI) has helped ease concerns about the Federal Reserve’s interest rate hike, reducing pressure on risky assets, including cryptocurrencies.
As market sentiment grew, investors showed a greater willingness to return to speculative assets such as the Pi Network.
CoinMarketCap’s Crypto Hope and Greed Index rose to 35 on Wednesday from 28 on Monday, reflecting a decrease in market panic and improved investor confidence.
In the past, rising interest in risk has often fueled a surge in trading in speculative cryptocurrencies.
A number of peripherals point to increasing interest in the Pi Network. According to CoinAnk, the open interest of PI futures increased from $9.11 million to about $12.14 million in the previous day.
The large increase indicates that traders are opening new positions instead of closing existing ones, indicating that they have new confidence and strong demand for speculation.
While rising interest rates alone do not guarantee higher prices, they often contribute to the increased liquidity in the market and the inflation that accompanies sentiment control.
Technical analysis of Pi Network: Can PI return $0.1000?
From a technical point of view, Pi Network is trying to form a base near $0.07500, while the downward support line that forms part of the downtrend continues.
A Doji candlestick formed near this support during the previous trading session, indicating a conflict between buyers and sellers and indicating the beginning of a short-term reversal.
The increase of 161.8% Fibonacci at $ 0.06793, measured from the low between $ 0.1998 and $ 0.1183, strengthens this support area and increases the possibility of a technical return.
If the purchase is extensive, the PI may focus on the following areas:
- $0.09613 – 127.2% Fibonacci extension
- $ 0.1000 – Level of psychological resistance
A definite move above $0.09613 would significantly improve the short-term outlook and increase the chance of a recovery to $0.1000.
Although the Pi Network remains in a growth mode, strong indicators suggest that the previous depression may be ending.
The Relative Strength Index (RSI) has dropped to 21, putting the indicator in oversold territory. Such readings usually indicate that sales have increased significantly and that a rally may be coming if buyers return.
Meanwhile, the Moving Average Convergence Divergence (MACD) is still below its line, confirming that the trend is still intact. However, the indicator also indicates that the bearish force may weaken after the recent decline.
The most important support is the 161.8% Fibonacci retracement at $0.06793.
A daily close below this level would reinforce the current trend and could start a new phase of price discovery to the bottom.
As long as the PI is working above this support, the possibility of a return to $0.09613 and eventually $0.1000 remains.
