The Pi Network [PI] token has retraced nearly all the gains it made earlier in May, casting doubt over the strength of its bullish momentum. After a stunning 188% surge in early May, PI suffered a dramatic 63% drop, erasing the rally and testing lows last seen three months ago. At the start of June, PI was trading below $0.66, with the $0.80 level emerging as a key resistance zone on the daily timeframe, according to Fibonacci retracement levels. This extreme volatility may dissuade risk-averse investors from entering the market.
Technical Patterns Offer Mixed Signals
On the 12-hour chart, PI appeared to form a descending wedge pattern, often seen as a signal of a potential bullish reversal. A breakout above the upper trendline could, in theory, kickstart a strong rally. However, closer analysis shows this wedge lacks structural integrity—particularly due to the poorly tested lower trendline between May 20 and 29. This gap casts doubt on the pattern’s reliability.
Meanwhile, the Money Flow Index (MFI) remained bearish, suggesting limited buying pressure. The On-Balance Volume (OBV) indicator also showed weak selling activity, highlighting a lack of conviction among both bulls and bears. With no clear directional trend, a strong recovery for PI remains uncertain.
Selling Pressure Persists on Lower Timeframes
On the 4-hour chart, selling pressure remains the dominant force. The OBV has been on a steady decline, underlining sustained distribution that dragged the price back toward the May 8 low. While PI is currently attempting to reclaim the $0.66 resistance, success appears unlikely unless demand improves.
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Even though the MFI flashed some signs of bullishness, the failure of OBV to show any recovery suggests that market participants are not accumulating PI in significant volume. Until this changes, flipping $0.66 into support will be a challenge.
With the bullish narrative from early May unraveling, Pi Network’s token faces an uphill battle. Unless buyer interest increases and technical indicators show stronger support, PI may continue to struggle below resistance in the short term.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
