Pi Network Price Forecast: PI takes a breather despite improving market sentiment

Pi Network (PI) edges lower by nearly 5% on Tuesday, breaking a streak of four consecutive days of recovery despite easing risk-off sentiment in the crypto market. The technical outlook for PI continues to suggest further downside as a bearish channel pattern remains intact.

Rising retail conviction overlooks PI token

The broader cryptocurrency market witnesses improving investor risk appetite, with Bitcoin (BTC) topping $66,000 on Tuesday. CoinMarketCap’s Fear and Greed Index rises to 40, entering neutral from the fear zone. Typically, a broader market recovery lifts PI tokens, but a near-term deviation puts PI at greater downside risk.

Technical outlook: Will Pi Network lose its recent gains?

Pi Network is down nearly 5% on Tuesday, as the 127.2% Fibonacci extension level, measured from $0.19980 to $0.11830, at $0.09613, capped the four-day recovery run in PI. From a technical perspective, the PI token remains in a bearish trend with a falling channel pattern intact on the daily chart.

The Relative Strength Index (RSI) at 39 on the daily chart shows a downtick below the midline, indicating elevated selling pressure.

Looking down, the immediate support for PI is at the 161.8% Fibonacci extension level at $0.06793.

On the topside, PI should clear the overhead trendline near $0.10500 to reinstate a recovery trend. However, the prevailing bearish bias places the declining 50-day Exponential Moving Average (EMA) at $0.11428 as immediate resistance for a potential breakout rally.

(The technical analysis of this story was written with the help of an AI tool. Know more.)