Analyzing Pi Network’s Recent Developments and Market Behavior
Pi Network [PI] has recently experienced a 2.03% price rally over the past 24 hours, indicating an uptick in trading volume to kick off the weekend. This positive movement was accompanied by a significant technical update from the team, which enabled millions of users, known as "Pioneers," to complete their mainnet migration. The recent announcement also revealed that Pi Network is experimenting with palm print authentication as a beta feature, which could enhance user security and engagement. Additionally, it’s worth noting that the distribution of Validator Rewards is adhering to the timeline established back in December 2025, which may impact user sentiment and trust in the platform.
However, despite these advancements, the overall sentiment surrounding the PI token has remained relatively negative. According to a report by AMBCrypto from November, bearish pressure on the token has persisted, with sellers predominantly overshadowing buyers across higher timeframes. The Chaikin Money Flow (CMF) is currently at -0.06, indicating that capital is flowing out of the PI market rather than into it. This selling trend has not shown signs of reversal, as the CMF has failed to cross above +0.05 since early December. Furthermore, a bearish crossover in the Moving Average Convergence Divergence (MACD) was noted nearly two weeks ago, suggesting that momentum is firmly on the side of sellers.
While the current trends paint a dismal picture for PI, there is potential for a price bounce based on technical analysis. By analyzing the recent price drop from $0.216 to $0.150 in January, Fibonacci retracement levels were plotted, indicating potential resistance levels around $0.19 to $0.20. The 61.8% and 78.6% Fibonacci levels suggest that a rebound could occur if buying pressure increases. The MACD has also shown signs of short-term bullish momentum as it climbs toward the zero line, yet the PI token has struggled to break through the $0.173 supply zone in the last three H4 trading sessions.
As traders consider their positions in PI, the question arises: should they look to sell? The likelihood of PI regaining its footing above the $0.17 mark is uncertain. Given the current market conditions, long-term investment doesn’t appear favorable. However, scalp traders may find opportunities in short-term trades. A retest of the $0.20 retracement level could offer a more attractive risk-reward ratio for shorting than current prices. For swing traders, achieving a rally beyond $0.216 is essential for prompting a bullish perspective.
In summary, Pi Network’s recent operations had a minor impact on the token’s price movement, which was largely overshadowed by prevailing bearish sentiment. The price rejection at the $0.17 zone over the weekend demonstrates that there is significant resistance in the market. Although a price bounce toward $0.20 may be on the horizon, traders should be cautious, as this level may also serve as a point for selling pressure. Monitoring these market dynamics will be crucial for navigating future trends effectively, allowing traders and investors to make informed decisions regarding their positions in Pi Network.
Disclaimer: The information presented herein does not serve as financial, trading, or other types of advice, but is solely the author’s opinion.
