Pi Network Price Forecast: PI defends $0.0800 support as selling pressure mounts

• Pi Network hovers above $0.0800 on Monday, extending the losses from the previous day.
• Retail speculation surrounding the PI token is easing, with the Open Interest below $9 million.
• The technical outlook for the PI token is bearish, at risk of breaking below the $0.0800 support level.

Pi Network (PI) is trading in the red on Monday, hovering above $0.0800 as selling pressure mounts. PI token’s speculative demand is easing, with Open Interest below $9 million despite rising social chatter, hinting at panic-driven buzz among investors. The technical outlook for PI suggests a bearish bias, with the risk of breaking below the $0.0800 support level. 

Retail support declines

Pi Network sees a decline in retail speculation from last week. CoinAnk data shows the PI futures Open Interest (OI) at $8.86 million on Monday, down from $10.52 million last week, suggesting a reduced notional value of active positions, driven by a declining spot price or a positional wipeout. In either case, this indicates a reduced retail participation, which is crucial for speculation-driven tokens like PI.

On the other hand, the market chatter surrounding the PI token is elevated, with Santiment’s data showing PI's social dominance score at 0.36% on Sunday, up from 0.06% on Thursday. The decline in retail activity, despite elevated market buzz around PI, reaffirms a bearish bias in investor sentiment. 

Technical outlook: Will PI defend its $0.080 support level?

Pi Network trades above $0.0800 at press time on Monday, holding steady above its crucial support level set by the July 31 low. The PI token extends a bearish near-term bias as price holds well below the 50- and 200-day Exponential Moving Averages (EMAs) at $0.0889 and $0.1230, respectively.

PI remains beneath a descending trendline, connecting the June 20 and August 22 highs, near $0.0880. The pair also trades under the 23.6% Fibonacci retracement at $0.0867, measured from $0.1394 to $0.0704, keeping it confined to the lower end of the recent range.

In addition, the roughly 7% decline on Wednesday broke below the short-term rising support trendline, connecting the July 14 and September 16 lows, near $0.0836, which also capped gains on Saturday.

Momentum remains bearish on the daily chart, with the Relative Strength Index (RSI) declining to 39, below the midline, while the slightly negative Moving Average Convergence Divergence (MACD) suggests that downside momentum is still present.

A confirmed breakout below the $0.0800 level could extend the decline toward the $0.0704 swing low. Any deeper pullback will push PI deeper into untested waters.

On the topside, initial resistance is clustered around the 23.6% Fibonacci retracement, the descending trendline, and the 50-day EMA near $0.0866, $0.0880, and $0.0889, respectively. A daily close above this band would open the way toward the 50% retracement level at $0.1049.

(The technical analysis of this story was written with the help of an AI tool. Know more.)