Pi Coin, $0.15 Collapse Crisis...Upgrade Boon Proves Futile

▲ Pi Network (PI)/ChatGPT generated image

The price of Pi Network (PI) continues its downward trend, falling below the $0.1500 mark. Despite the positive news of a large-scale upgrade to the mainnet nodes, the bearish trend persists. However, the Relative Strength Index (RSI) on the short-term chart shows a positive divergence, sparking possibilities for a technical rebound.

According to cryptocurrency specialized media FXStreet Invest on May 20 (local time), the Pi Network core development team announced that the mainnet's major nodes have completed their upgrade to Stellar Protocol version 23. Pi Network's underlying infrastructure is the Stellar blockchain. This upgrade included transitioning the operating system from Ubuntu 20 to 24 and updating the database engine from PostgreSQL 12 to 16.

Despite these technical advancements, the Pi Network price hovers around $0.1475 as of Wednesday, maintaining a bearish bias. This is because the current price is below both the short-term exponential moving average (EMA) of $0.1605 and the long-term EMA of $0.1709. The Moving Average Convergence Divergence (MACD) also shows a flat trend below the baseline of 0, indicating a slowdown in bearish momentum but no clear signs of recovery.

On the other hand, signals for a rebound due to excessive declines have also been detected. The current Relative Strength Index (RSI) is around 29, entering the oversold zone. Notably, a positive divergence occurred between the RSI and price movement as the price approached yesterday's low of $0.1463. In the past, such signals have led to trend reversals, acting as catalysts to push the price up to around the downtrend line of $0.1519.

If Pi Network forms a daily closing price above $0.1519 in the future, a rebound rally could begin. In this scenario, the primary target would be the 50-day exponential moving average (EMA) of $0.1605, and if broken, the upward trend is expected to continue to the 200-day EMA of $0.1709. Conversely, if yesterday's low support level of $0.1463 breaks and the daily candle closes below it, the opportunity for a technical rebound will be completely nullified.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*