After a sharp 70% drop from its May peak, Pi Network price is showing early signs of recovery, with a bullish RSI divergence suggesting a potential trend reversal.
After a sharp crash from a peak of $1.67 in May, the price of Pi Network (PI) has been gradually declining, stuck in a continuous downtrend marked by lower highs and lower lows. The token has lost more than 70% of its value over the past two months, recently stabilizing at around $0.45.
However, the PI price is now showing early signs of a potential trend change after printing a bullish RSI divergence on the daily chart. Although the price action made new lows in late June and early July, the RSI has started printing higher lows, signaling that bearish momentum is waning. This classic divergence setup often precedes trend reversals or short-term rallies.
Currently trading around $0.4575, PI price is hovering around new support around $0.45 established after the recent breakout from the $0.50–$0.52 zone. If the divergence holds, this zone is the immediate resistance to watch, where trapped buy orders from the previous breakout could create selling pressure. If bullish momentum picks up, PI price could target a mild recovery towards $0.65, in line with the spike on June 25.
However, it is important to note that Pi Network still faces significant token unlock pressure this month. According to PiScan, a total of approximately 219 million PI will be unlocked throughout July, with the first day of unlocking on July 4 releasing 19.2 million PI into circulation. This represents approximately 4% of the current circulating supply, and the large volume of tokens set to be unlocked could cause additional selling pressure.
