Pi Network Consolidates Above Critical Support as Crypto Market Rally Loses Steam

Technical Strength Amid Profit-Taking

Pi Network is demonstrating relative steadiness on Wednesday, with the PI token trading in the vicinity of $0.0900 while maintaining its position above the critical support level at $0.0853. This support level corresponds to the 23.6% Fibonacci retracement, derived from PI’s decline spanning from its recent peak of $0.1341 to its swing low of $0.0703. The immediate technical picture suggests that as long as PI remains anchored above this level, buyers may have room to engineer another recovery attempt. The broader market environment, however, reflects caution following a strong previous week as participants across the cryptocurrency space are harvesting profits from recent gains.

Market Liquidations and Extreme Sentiment

The cryptocurrency sector is experiencing a notable pullback this week, with significant evidence of risk reduction among leveraged traders. According to CoinGlass, as reported by the source, approximately $373 million in leveraged positions experienced forced liquidation over the past 24 hours. Long positions represented roughly $310 million of this total, demonstrating that bullish traders who anticipated continued momentum were caught off guard by the selling pressure. This pattern reflects how quickly sentiment can shift when profit-taking accelerates. Interestingly, broader market psychology remains elevated despite the pullback. According to CoinMarketCap’s Crypto Fear and Greed Index, sentiment registered at 80 on Wednesday, firmly positioning the market within the “extreme greed” zone. This disconnect between technical pullbacks and strong sentiment suggests that traders view current declines as temporary corrections rather than a fundamental reversal, though conviction may be tested if selling pressure intensifies.

Resistance Levels Define Recovery Path

For Pi Network to establish stronger momentum, the token must overcome the 50% Fibonacci retracement level at $0.1022, a barrier that previously rejected recovery attempts in mid-July. A clear daily close above this resistance could open the path toward the 78.6% Fibonacci retracement at $0.1204 and would bring PI through the psychologically significant $0.1000 threshold, potentially triggering fresh buying interest. The technical indicators supporting such a move, however, show limited conviction. The Moving Average Convergence Divergence indicator sits marginally above its signal line on the daily timeframe, but the narrow separation between the lines points to weak momentum. The Relative Strength Index hovers near 51, suggesting balanced conditions between buyers and sellers without decisive directional bias. On the downside, traders should watch for a confirmed close below the $0.0853 support level, which could signal weakening demand and potentially send PI toward revisiting its recent swing low at $0.0703.

The technical dynamics playing out for Pi Network mirror the broader challenge confronting cryptocurrency markets as participants balance positive long-term sentiment against the immediate mechanics of profit-taking and position reduction.

Source: CoinGlass and CoinMarketCap, via the source. Not financial advice.