Pi Coin (PI) Starts Rebounding After 20% Plunge...Is the Selling Bomb Nearing its End?

▲ Pi Network (PI)/ChatGPT generated image

While Pi Coin (Pi Network, PI) plummeted by approximately 20% over 7 days, a short-term rebound signal has been detected in the Relative Strength Index (RSI).

According to FXStreet, a cryptocurrency media outlet, on July 29 (local time), Pi Coin has fallen by approximately 20% over the past 7 days. Although testing of Pi Launchpad's liquidity pool continues, selling pressure remains strong. The technical trend shows a conflict between long-term bearishness and short-term rebound signals.

Online interest in Pi Network has slightly recovered. According to Santiment data, online mentions increased from 3% to 10% on Sunday. Its share also rose from 0.003% to 0.01%.

Pi Network has unveiled a liquidity pool consisting of SLICE and Test-Pi tokens on its testnet. This liquidity pool uses an automated market maker (AMM) algorithm that calculates exchange ratios based on the holdings of the two assets. Pi Network is pursuing this test as a step towards expanding its decentralized finance (DeFi) ecosystem.

On the daily chart, Pi Coin remains within a falling parallel channel. The hammer-shaped candlestick formed the previous day indicates that buying and selling pressure are finding a balance after a prolonged downtrend. The Moving Average Convergence Divergence (MACD) slightly surpassed the signal line, but buying pressure is weakening.

The Relative Strength Index (RSI) lingered near 30, the oversold threshold. Unlike the price, which retested the July 13 low, the RSI recorded a higher level than at that time, indicating a bullish divergence. If the rebound continues, the first resistance level is $0.0961, which is the 127.2% extension line calculated based on $0.11998 and $0.1183. A clear signal of an upward reversal will form only after breaking past $0.0961 and then surpassing the upper trend line near $0.1.

On the downside, the vicinity of the all-time low of $0.07 is a major support level. The 161.8% extension line at $0.0679 reinforces this zone. If the daily closing price forms below $0.0679, the decline could accelerate.

[Article Key Summary]

-Pi Coin has fallen by approximately 20% over the past 7 days, but a bullish divergence has appeared in the Relative Strength Index (RSI).

-Online mentions of Pi Network increased from 3% to 10%, and testnet liquidity pool testing continued.

-The upper resistance level is $0.0961, and if $0.0679 is broken, the downtrend could deepen.

*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.*