Pi Network broke above resistance, but weak momentum and low demand signal risk | Credit: Hameem Sarwar
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Key Takeaways
PI hit a new low, and despite a rebound, its descending triangle suggests it may remain trapped.
Signals remain bearish, with the AO in negative territory and CMF showing capital outflows.
Upcoming Mainnet upgrades add risk, as possible outages could dampen buying pressure.
On Aug. 26, as several altcoins registered higher highs, the Pi Network (PI) price reached a new all-time low. Today, the token’s market value has bounced from that point.
Yet, a closer look at the PI technical setup shows that a major breakout seems impossible. In this analysis, CCN explains all the reasons why the Pi Network price may remain trapped in the long run.
High demand for the token also played a major role in the surge.
However, over the past few months, that has changed. Attention PI received when it became available for trading has fizzled.
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The cryptocurrency lacks notable trading volume to keep the price elevated.
On the 4-hour chart, PI’s price is confined in a descending triangle.
A closer look at the chart shows that Pi Network has broken above its resistance line.
However, caution remains as the red line of the Supertrend indicator still sits below the price, while the Awesome Oscillator (AO) stays in negative territory, signaling ongoing bearish momentum.
If these conditions persist, the Pi Network price may struggle to clear the $0.40 resistance, and even if it does, breaking through the $0.45 barrier could prove equally challenging.
In the meantime, the Pi Network team has announced that it is working on upgrades to its Mainnet.
However, the team also cautioned that the development process could lead to temporary outages on the network.
“There will also be an upcoming rollout of protocol upgrades that begins with Testnet1 this week, and continue with Testnet2 and Mainnet upgrades into the next few weeks, which may potentially require planned outages of the blockchain services,” The Pi Core Team disclosed.
As a result, buying pressure for PI may ease, increasing the likelihood of a return to its record low.
Until confidence strengthens, the network’s upgrade-related risks could suppress bullish sentiment.
PI Price Action Bearish
On the daily chart, the Chaikin Money Flow (CMF) has slipped below the zero line, confirming that capital outflows outweigh inflows.
At the same time, the MACD reading remains muted, signaling that bulls are staying on the sidelines and showing little appetite to buy.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
