Pi Network Attempts Modest Bounce as Bears Retain Control

Key Moments

Price Action: Mild Recovery From Record Low

Pi Network (PI) is trading about 1% higher at press time on Tuesday. This move marks a modest rebound after the token posted a new record low of $0.1502 on Monday.

At the time of writing, PI is changing hands above $0.1900. As a result, the token is trading nearly 30% above Monday’s low.

Meanwhile, notable outflows from centralized exchanges over the past 24 hours have helped stabilize price action. This trend has so far protected the $0.1919 support level on a daily closing basis.

Exchange Reserves and Retail Flows

According to PiScan data, centralized exchange reserves of PI dropped by 4.24 million tokens over the last 24 hours. These withdrawals point to increased buying activity.

As a result, downside momentum has weakened, allowing PI to maintain a daily close above $0.1900. If this trend continues, selling pressure could ease further.

Moreover, a sustained decline in exchange-held PI would reduce short-term supply. This shift could improve the chances of a more durable price recovery.

Technical Picture: Downtrend Still Dominant

Despite the short-term rebound, PI’s broader technical outlook remains bearish. Both the 20-day and 50-day Exponential Moving Averages continue to slope downward.

Meanwhile, momentum indicators confirm ongoing weakness. The MACD has turned lower from the zero line and crossed below its signal line.

In addition, the expanding negative histogram highlights strong downside momentum. This setup suggests sellers remain in control.

The Relative Strength Index stands near 30. This level places PI close to oversold territory after the recent sharp decline.

Key Levels: Supports and Potential Resistance

A daily close below $0.1919 would likely confirm further downside. In that case, traders may focus on the S1 and S2 Pivot supports at $0.1835 and $0.1632.

On the upside, any continued rebound may face resistance at the falling 20-day EMA near $0.2045. Beyond that, the 50-day EMA around $0.2116 could cap gains.

Therefore, bulls would need to reclaim these levels to challenge the prevailing downtrend.

Crypto Market Basics: Bitcoin, Altcoins, Stablecoins, and Dominance

What is Bitcoin?

Bitcoin is the largest cryptocurrency by market capitalization. It was designed to function as digital money.

Importantly, no single entity controls Bitcoin. This structure removes the need for intermediaries in financial transactions.

What are altcoins?

Altcoins refer to all cryptocurrencies other than Bitcoin. However, some investors exclude Ethereum due to its foundational role in blockchain development.

If that view is applied, Litecoin is often considered the first altcoin. It was created by forking the Bitcoin protocol.

What are stablecoins?

Stablecoins are cryptocurrencies built to maintain a stable price. Their value is typically backed by assets such as fiat currencies or commodities.

In most cases, stablecoins are pegged to the US Dollar. Their supply is managed through algorithms or market demand.

As a result, stablecoins offer traders a reliable on- and off-ramp. They also provide a way to store value during periods of high volatility.

What is Bitcoin Dominance?

Bitcoin dominance measures Bitcoin’s market capitalization relative to the total crypto market. It helps gauge investor preference.

Typically, high BTC dominance appears before or during bull markets. During these periods, investors favor Bitcoin for its relative stability.

Conversely, a decline in Bitcoin dominance often signals capital rotation into altcoins. This shift can trigger strong altcoin rallies.