The Pi Network (PI) token finds itself in a tough spot once again. While some bullish signals have emerged on lower timeframes, the overall market sentiment remains weak, and buying demand is still lacking. After a brief surge in May, PI is now trading near levels last seen in early March – and the prospects of a strong recovery remain uncertain.
📉 From Euphoria to Selloff: 188% Rally Followed by 63% Crash
In early May, investors got a glimpse of hope when PI soared by nearly 188%. However, the rally was short-lived, as a sharp 63% decline erased nearly all the gains. This extreme volatility has raised concerns again about the token’s market stability, potentially discouraging new participants.
📊 Technical View: A Wedge Full of Doubt
On the 12-hour chart, PI appears to be forming a falling wedge pattern – typically considered bullish and signaling the end of a downtrend. Yet in this case, the pattern looks unreliable. The lower trendline hasn’t been tested sufficiently, and a large gap on the chart between May 20 and 29 disrupts the integrity of the structure.
The MFI (Money Flow Index) shows some bullish momentum, but the OBV (On-Balance Volume) remains in a clear downtrend, reflecting persistent selling pressure and low buyer interest.
🧭 Key Resistance Levels: $0.66 and $0.80
In the short term, PI is attempting to break through the $0.66 resistance level, so far unsuccessfully. The next major hurdle lies at $0.80, which aligns with a critical Fibonacci level on the daily chart.
Without a significant rise in trading volume and a rebound in demand, breaking through these levels seems unlikely.
🧠 Summary
🔹 The technical setup hints at a potential reversal, but weak demand weighs heavily.
🔹 Volatility has scared off potential investors.
🔹 Key resistance levels ($0.66 and $0.80) are holding back any bullish breakout.
🔹 Without volume recovery and a shift in market sentiment, PI may continue its downtrend or stay range-bound.
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