Pi Network Price Forecast: PI nears record lows as hopes of a bullish breakout weaken

• Downside risks remain in focus for Pi Network after Wednesday's approach to record-low support at $0.0704 and subsequent rebound towards $0.0762.
• Derivatives market activity weakens as PI futures Open Interest drops sharply to nearly $7.50 million.
• Persistent downward momentum keeps PI's technical outlook bearish.

Selling pressure keeps Pi Network (PI) in negative territory on Wednesday, with the token trading around $0.0755 and facing downside risk towards its record low of $0.0704. Retail participation in the derivatives market is weakening, as reflected in a sharp fall in PI futures Open Interest to nearly $7.50 million. Sustained downward momentum continues to underpin a bearish technical outlook for PI. 

Is trader interest in PI fading?

Demand for Pi Network is fading among derivatives traders. According to Blockworks data, PI futures Open Interest (OI) declined from $8.16 million the previous day to $7.56 million on Wednesday. The fall, alongside a lower spot price, suggests that positions are being wiped out. When OI and the spot price decline together, it typically signals weaker risk appetite for the token, resulting in subdued derivatives market activity.

Technical outlook: Can PI hold off another decline?

After testing the $0.0700 round-number level earlier in the day, Pi Network is trading above $0.0760. Lower prices have been rejected, allowing PI to hold near-term support at $0.0740, established by the 15 October low.

The bearish trend nevertheless remains intact, with the PI token trading below its 50-day and 200-day Exponential Moving Averages (EMAs), at $0.0822 and $0.1134, respectively. Adding to the 50-day EMA hurdle is a descending resistance line near $0.0779, which continues to limit recovery attempts.

Momentum indicators offer mixed signals. The Moving Average Convergence Divergence (MACD) remains in negative territory but above its signal line. Meanwhile, the Relative Strength Index (RSI), at 36, has moved below the midline, indicating that sellers retain control.

A confirmed break beneath the $0.0740 base could shift attention to the Fibonacci anchor low near $0.0704. Buyers would be expected to defend that level, which marks the low of the recent bearish cycle.

Any move higher would initially face resistance around $0.0779, the trendline break area, followed by the 50-day EMA at $0.0822. Further up, a more significant barrier lies at $0.1049, corresponding to the 50% retracement of the decline from $0.1394 to $0.0704.

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