Pi Network (PI) is starting to show a recovery trend as Open Interest in derivatives rises to $10.73 million, up from $10.44 million just a day prior. This surge in Open Interest indicates that speculative traders are positioning themselves for a potential rebound following a prolonged period of consolidation and decreased selling pressure.
The recent trading activity comes after three days of stagnant price movement, hinting that sellers may be retreating after a significant correction earlier this month. Even though the broader trend remains bearish, the increasing derivatives activity combined with deeply oversold technical indicators suggests a possible short-term recovery for PI.
The upcoming Stellar Protocol version 25 mainnet upgrade could also enhance market sentiment. Scheduled for July 22, this event may positively impact PI's recovery, particularly as investor optimism begins to rekindle after a steep sell-off.
Despite the positive signs, PI is still trading below the crucial $0.0800 resistance level. From a technical standpoint, it remains trapped within a falling channel, holding near a significant support area at $0.06793. The Relative Strength Index (RSI) currently sits around 17, indicating that PI is deep in oversold territory, which often precedes a price reversal. However, while the RSI indicates stretched selling pressure, it does not guarantee an immediate turnaround.
As the market begins to stabilize, the Moving Average Convergence Divergence (MACD) is also showing signs of weakening bearish momentum, suggesting that sellers might be losing their grip on the market. If PI can maintain its position above key support levels, it could pave the way for a relief rally.
This article is for informational purposes only and does not constitute financial advice.
