Pi Network dips 1% as falling Open Interest leaves $0.0801 support at risk

Key takeaways

• The token stabilized near $0.0823, staging a modest recovery from its support level at $0.0801.
• Futures open interest dropped by approximately 14%, falling from $10.38 million to $8.94 million.
• PI faces overhead resistance at $0.0827 and $0.0902, while a drop below $0.0801 could open the door to $0.0704.

Pi Network experienced downward pressure on Thursday, temporarily pausing its ongoing selloff. However, a combination of slowing derivatives activity and persistent bearish momentum continues to cloud the token’s recovery prospects.

Hovering around $0.0823, PI registered a 1% decline following seven straight days of negative closes. This slight stabilization occurred after a steep 7% drop the day before, bringing the price close to its July 31 low of $0.0801.

Even with this minor bounce, the cryptocurrency remains positioned below major moving averages, presenting bulls with multiple technical hurdles.

Pi Network futures open interest declines by 14%

According to data from CoinAnk, outstanding open interest for Pi Network futures dropped to $8.94 million, down from the previous day’s $10.38 million.

This contraction of $1.44 million represents an approximate 14% decline in the total value of active contracts.

A decrease in dollar-denominated open interest can be driven by declining asset prices, position closures, liquidations, or a mix of these elements. Consequently, this metric on its own does not specify the exact volume of traders actively exiting their positions.

Even so, the shrinking open interest suggests that the current price stabilization is supported by a thinning derivatives market rather than a robust influx of speculative buyers.

Data from Santiment indicated that PI’s social dominance softened slightly to 0.13%, down from 0.14% a day earlier.

These figures show that market discussions surrounding the token remain active despite its downward price movement.

However, social media buzz does not automatically translate into buying pressure. The combination of sustained public interest and falling open interest presents a conflicting outlook: while PI remains on traders’ radars, this attention has not yet translated into a meaningful recovery in demand.

Technical resistance levels and support for PI

Although PI began recovering near the $0.0801 level, the token remains capped beneath the 23.6% Fibonacci retracement level of $0.0827, plotted from the swing high of $0.1341 to the low of $0.0704.

Clearing the $0.0827 mark is the first essential step to validate any recovery attempt. Overcoming this level on a daily closing basis could shift the market’s focus toward the 50-day exponential moving average (EMA) at $0.0902.

Meanwhile, the longer-term 200-day EMA sits much higher at $0.1247. Because the price remains below both of these critical moving averages, the overarching trend remains bearish despite Thursday’s brief respite.

The daily Relative Strength Index (RSI) is currently hovering around 38, reflecting sluggish buying momentum while remaining just above the oversold boundary.

Concurrently, the MACD line is trading below its signal line in negative territory, validating the prevailing bearish trend.

On the downside, key structural support lies at $0.0801. A decisive break below this floor would likely expose the Fibonacci anchor at $0.0704, where buyers may step in to establish a more durable floor.

At present, the mid-week bounce remains highly fragile. While holding above $0.0801 and recapturing $0.0827 could improve the short-term outlook, failure to do so risks triggering another leg down.