Pi holds above $0.085 support as crypto market recovery loses momentum

Key takeaways

• Pi Network is trading near $0.0900 on Wednesday, maintaining a slight upward trajectory above key support at $0.0853.
• The wider cryptocurrency market is experiencing a pullback as traders lock in profits following double-digit gains last week.
• Clearing resistance at $0.1022 could pave the way for PI to target $0.1204.

Pi Network is posting modest gains on Wednesday, with the PI token trading near $0.0900 and holding above a critical support level. However, the broader cryptocurrency market recovery is losing steam as market participants secure profits following last week’s sharp rise. At the same time, mixed technical indicators for PI highlight a lack of strong buying momentum.

Profit-taking slows the crypto market rally

The wider digital asset market is trending downward this week, retracing after major cryptocurrencies posted double-digit gains last week. According to data from CoinGlass, roughly $373 million in leveraged derivatives positions were wiped out in the last 24 hours. Long positions made up the vast majority of these liquidations at $310 million, suggesting that the sudden dip caught optimistic traders by surprise. This wave of long liquidations highlights growing selling pressure as investors de-risk and secure profits from the recent uptrend.

Even with this retracement, broader market sentiment remains highly optimistic. On Wednesday, CoinMarketCap’s Crypto Fear and Greed Index registered a score of 80, placing the market deep inside “extreme greed” territory. This metric indicates that bullish sentiment remains dominant while market participants evaluate whether the current pullback is a minor correction or the start of a deeper trend reversal.

Pi Network holds above the $0.0853 support

At the time of writing, the PI token is trading close to $0.0900, preserving a neutral outlook in the short term. The cryptocurrency continues to hold above its 23.6% Fibonacci retracement level of $0.0853, which is mapped from its decline from a high of $0.1341 to a swing low of $0.0703. While keeping above $0.0853 allows buyers to maintain hopes of a continued recovery, the token requires more robust purchasing volume to clear overhead resistance.

The next significant obstacle for Pi Network lies at the 50% Fibonacci retracement level of $0.1022. This price point acted as a ceiling for PI’s recovery efforts in mid-July, establishing it as a key supply zone. A convincing daily close above $0.1022 would bolster the bullish case, potentially driving the price toward the 78.6% Fibonacci level at $0.1204. Successfully breaking this barrier would also push the token past the psychologically significant $0.1000 mark, which could trigger a wave of fresh buying interest.

Momentum indicators for Pi Network are stabilizing but have not yet signaled a definitive bullish trend. On the daily chart, the Moving Average Convergence Divergence (MACD) line sits slightly above its signal line, suggesting a minor bullish bias. However, the tight gap between the two lines points to weak upward momentum. Similarly, the Relative Strength Index (RSI) is hovering near 51, a neutral reading that indicates an equilibrium between buyers and sellers, leaving the token highly dependent on broader market trends.

In the near term, the key support level to watch is the Fibonacci level at $0.0853. A confirmed daily close below this floor would likely invalidate the current recovery thesis and trigger additional selling, potentially sending the asset back down to its swing low of $0.0703. On the other hand, if the price consolidates above $0.0853, it will keep the door open for another attempt to challenge the resistance at $0.1022.