Pi Network (PI) has recently entered a technically significant zone, with multiple indicators suggesting that the token is approaching oversold conditions—a setup that historically precedes sharp reversals for this asset. After a strong bullish expansion earlier in May, PI has experienced a notable correction, dropping from interim highs near $1.67 to current levels around $0.71This 20%+ decline over the past month has brought the price into a range framed by a swing high at $0.99 and a swing low at $0.66, establishing a potential accumulation zone for traders.

Technical Indicators and Patterns

  • Relative Strength Index (RSI): The RSI is trending toward 30, a level commonly associated with oversold conditions. Historically, when PI’s RSI dips into this territory, strong bullish reversals have followed, often propelling the RSI back into the 70–90 range. These reversals typically coincide with failed breakdowns at high-confluence support levels, suggesting that the current market structure could be setting up for a similar outcome.

  • Volume Profile: Volume has been tapering off as the price approaches support, a classic sign of seller exhaustion. This declining volume at support often precedes a surge in buy-side activity, which can trigger a rapid price reversal if buyers step in with conviction. A reclaim of the $0.74 point of control would confirm demand absorption and set up the next leg higher, targeting resistance at $0.85 and $0.99

  • Symmetrical Triangle Formation: Chart analysis shows PI consolidating within a decisive symmetrical triangle, moving toward its apex. Bollinger Bands are expanded but running parallel, indicating ongoing volume but reduced volatility. If the RSI’s bearish divergence plays out, a breakdown toward the lower Bollinger Band at $0.52 is possible, but a rebound from this level could attract new liquidity and spark a steep upswing.

Market Sentiment and Outlook

Despite the recent correction, sentiment remains bullish, with 88% of traders expressing optimism and the Fear & Greed Index sitting at 68 (Greed)1. However, the market is in a wait-and-see mode, as both bulls and bears appear passive following the sharp mid-month selloff. The next few days are critical: a rise in volatility and volume could help PI close May on a bullish note, with a potential price range of $0.68 to $0.74

Key Risks and Catalysts

  • Token Unlocks: Recent large-scale token unlocks have increased selling pressure, contributing to the current correction. Further unlocks or unexpected supply shocks could lead to additional downside.

  • Mainnet and Ecosystem Developments: Progress on the Pi Network mainnet, new exchange listings, or ecosystem partnerships could revive sentiment and drive a breakout from current consolidation levels.

Conclusion

Pi Network is at a technical crossroads, with oversold signals and declining volume at support hinting at a potential bullish reversal. Traders should monitor the $0.74 level and watch for a surge in volume as confirmation of renewed buying interest. If historical patterns hold, PI could soon attempt a rally toward previous swing highs, but caution is warranted given the risk of further breakdown if support fails