Pi Network Price Struggles: Can It Recover From All-Time Low?

Pi Network's Rocky Road: Recovery or Further Decline?

Pi Network (PI) experienced a significant downturn, reaching a new all-time low of $0.32 on August 1. While a slight recovery to $0.36 has occurred, prevailing bearish sentiment suggests the altcoin might retest its low or even fall further in the coming weeks.

Technical Indicators Signal Caution

Despite a 4% price increase to $0.36, technical indicators point to potential challenges for Pi Network.

Negative Divergence

A concerning sign is the decline in trading volume alongside the price increase. Pi's trading volume has dropped nearly 30% to around $112 million. This negative divergence indicates that the price rise lacks solid support.

Parabolic SAR Resistance

Readings from the Parabolic Stop and Reverse (SAR) indicator reinforce the bearish outlook. The indicator's dots, acting as dynamic resistance, are positioned above the token's price at $0.47.

The Parabolic SAR identifies potential trend direction and reversals. When the dots are above the price, it signals a downtrend, suggesting further price declines unless a bullish reversal occurs.

Demand Needed to Break Bearish Trend

On the daily chart, PI is fluctuating between its all-time low support at $0.32 and resistance at $0.40. With bears currently in control, PI could resume its decline and retest the all-time low or break below it.

However, renewed demand could push PI's price above $0.40, potentially targeting $0.46.