The Pi Network (PI) token has faced a challenging period, with its value significantly depreciated from previous highs. Recent price movements spark a critical question: is the beleaguered token on the verge of a recovery, or do market indicators signal continued caution for investors?
A Lingering Long-Term Downtrend
Despite recent daily gains, the Pi Network token remains entrenched in a pronounced long-term downtrend, witnessing an 87% decline from its February 2025 highs. While the pace of this decline has notably slowed since late July, evidenced by shallower lower lows, and the Relative Strength Index (RSI) is approaching the neutral 50 mark, signaling a potential momentum shift, history advises caution. A similar RSI surge in early August was swiftly followed by a 23% price drop within 16 days. Furthermore, the On-Balance Volume (OBV) has yet to show a higher high, indicating a persistent lack of significant accumulation in the spot market and suggesting that a broader recovery is not immediately on the horizon.
Glimmers of Short-Term Upside
In contrast to the longer-term outlook, a more optimistic picture emerges from the shorter timeframes. The 2-hour chart for PI currently reveals a short-term bullish reversal. The market structure on this timeframe has turned bullish, with the token successfully breaching and retesting a key local resistance level at $0.368 as support. This breakout is supported by robust RSI readings and a consistent upward trend in the OBV over the past four days, reflecting steady buying pressure since late August. Should bulls successfully defend the $0.368 support level, further short-term gains could materialize. However, the broader market sentiment, particularly any weakness in Bitcoin, remains a critical external factor that could influence PI's trajectory.
