PI eyes rebound as Open Interest rises and oversold conditions deepen

Key takeaways

• Pi Network (PI) is showing signs of recovery after several days of consolidation and easing selling pressure.
• Rising Open Interest suggests speculative traders are positioning for a potential rebound.
• The upcoming Stellar Protocol v25 mainnet upgrade and improving market sentiment could support PI’s recovery.

Pi Network (PI) posted modest gains on Friday after three consecutive sessions of sideways trading, suggesting that selling pressure may be easing following a sharp correction earlier this month.

Although the token remains in a broader downtrend, increasing derivatives activity and deeply oversold technical indicators are fueling speculation that PI could be preparing for a short-term rebound.

Speculative demand begins to strengthen

Pi Network remains one of the cryptocurrency market’s most speculative community-driven assets, making its price particularly sensitive to shifts in investor sentiment.

After a steep sell-off earlier this month, optimism has started to improve as broader market risk appetite stabilizes.

Another potential catalyst is the Stellar Protocol version 25 mainnet upgrade, scheduled for July 22, which could support sentiment across ecosystems connected to Stellar-based infrastructure.

Meanwhile, derivatives data points to growing speculative interest. According to CoinAnk, Pi Network Open Interest increased to $10.73 million on Friday from $10.44 million a day earlier. 

Open Interest has steadily recovered from $9.11 million recorded on Monday, indicating that traders are gradually returning to the market after the recent correction.

The increase suggests retail investors are beginning to position for a possible recovery, although conviction remains relatively modest.

PI remains oversold despite stabilizing price action

From a technical perspective, Pi Network continues to trade below the key $0.0800 resistance level, leaving the broader trend bearish.

However, the token has managed to hold near the lower boundary of a falling channel, where technical support is reinforced by the 161.8% Fibonacci extension level at $0.06793.

Holding above this area could provide the foundation for a relief rally if buying momentum continues to build.

Technical indicators are beginning to show early signs that the recent decline may be losing momentum.

The Relative Strength Index (RSI) has fallen to around 17, placing PI deep in oversold territory. While oversold readings do not guarantee a reversal, they often indicate that selling pressure has become stretched.

At the same time, the Moving Average Convergence Divergence (MACD) remains below the zero line but is showing signs of weakening bearish momentum, suggesting sellers may be losing control.

If PI extends its recovery, the first resistance level is the 127.2% Fibonacci extension at $0.09613.

A stronger rebound would then face resistance near $0.110, where the upper boundary of the falling channel could limit further gains unless broader market sentiment improves.

On the downside, the 161.8% Fibonacci extension at $0.06793 remains the most important support level.

A decisive break below that area could expose the 227.2% Fibonacci extension near $0.01463, significantly increasing downside risk.

For now, Pi Network’s deeply oversold technical setup, combined with rising Open Interest and improving market sentiment, suggests that a short-term recovery remains possible, although the broader trend will remain bearish until key resistance levels are reclaimed.