Pi Network, even $0.0700 is precarious… Risk of hitting a new all-time low increases

▲ Pi Network (PI)/ChatGPT generated image ©

A warning has been issued that Pi Network (PI) could hit an all-time low below $0.0700 as it failed to break out of a downward channel and fell by more than 2%.

According to FXStreet, an investment media outlet, on August 3 (local time), PI fell more than 2% on Monday, indicating clear selling pressure. Amid ongoing risk-off sentiment in the cryptocurrency market, Pi Network's technical outlook also points to further downside.

CoinMarketCap's Fear & Greed Index recorded 34 on the day, keeping investor sentiment in the fear zone. Analysts suggest that the overall weakening preference for risk assets, exacerbated by the Coldcard wallet hacking incident, is limiting the upside potential of altcoins, including PI.

Signs of investor exodus also appeared in the derivatives market. According to CoinAnk, PI futures open interest decreased from $8.94 million on Saturday to $8.41 million. This is interpreted as a result of a decrease in the notional value of currently held futures contracts due to price declines or position liquidations.

Technically, PI is trapped in a downward channel, moving between two parallel descending trendlines. While it attempts to stabilize around its recent low of $0.0700, the upper trendline at $0.0910 acts as strong resistance. To alleviate downward pressure, this price level must be decisively broken. Subsequently, the Fibonacci 127.2% extension at $0.0961, based on the decline from the $0.1998 high to the $0.1183 low, is identified as immediate resistance. If this is surpassed, the Fibonacci pivot point of $0.1183 could act as the next resistance.

Momentum indicators showed some signs of improvement. The Moving Average Convergence Divergence (MACD) maintains an upward trend above its signal line, and the Relative Strength Index (RSI) around 40 suggests that the oversold condition is easing. However, on the downside, the previous low and Fibonacci 161.8% extension at $0.0679 is a key support level. If PI consistently closes below this price, the risk of setting a new all-time low is expected to increase.

*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.*