Has Pi Coin (PI) hit rock bottom?…Technical rebound signal amid recovery in social interest

▲ Pi Network (Pi Network, PI)/AI generated image ©

Pi Network (PI) stabilized near its all-time low after a recent 20% drop over 7 days, and a bullish divergence in the Relative Strength Index (RSI) is increasing the possibility of a short-term rebound.

According to investment media FXStreet on July 29 (local time), Pi Network maintained a steady trend above $0.0700 on Wednesday. Although liquidity pool tests for Pi Launchpad are underway, selling pressure remains strong, and with short-term rebound signals coinciding with long-term bearish trends, the technical outlook is mixed.

Social media interest has slightly recovered. According to Santiment, PI's social volume rose from 3% to 10% on Sunday, and its social dominance increased from 0.003% to 0.01%. Pi Network announced the launch of a liquidity pool consisting of SLICE and Test-Pi tokens on its testnet.

This liquidity pool uses an Automated Market Maker (AMM) algorithm to calculate swap prices based on the quantity of the two assets deposited in the pool. The media explained that this test is a step towards expanding Pi Network's decentralized finance (DeFi) ecosystem.

On the daily chart, PI remains within a descending parallel channel, maintaining a short-term bearish bias. However, a hammer candlestick formed the previous day, and the Moving Average Convergence Divergence (MACD) is slightly above its signal line. The Relative Strength Index (RSI) is near 30, an oversold zone, but a bullish divergence has appeared as RSI lows have risen while the price retested the same area as its July 13 low.

If the rebound continues, PI could test $0.0961, the 127.2% extension calculated based on the movement from $0.11998 to $0.1183. This price acted as resistance, limiting a rebound on July 20. To confirm a clear bullish reversal, PI must break above this level and then surpass the upper trendline near the psychological resistance of $0.1000. Conversely, if the daily candle closes below the all-time low of $0.0700 and the 161.8% extension of $0.0679, the decline could accelerate further.

*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.*