Pi Network (PI) posted modest gains on Friday, snapping three consecutive sessions of sideways trading. The token's open interest climbed to $10.73 million from $10.44 million a day earlier, recovering from a Monday low of $9.11 million. The move comes as the Relative Strength Index (RSI) for PI has fallen to around 17, well into deeply oversold territory.
Oversold Signals and Speculative Demand
An RSI reading below 30 typically signals that an asset is oversold, and a value of 17 suggests selling pressure may have exhausted itself. Traders are watching for a potential bounce, especially as speculative demand for PI appears to be strengthening. Retail investors, who retreated from the market earlier in the week, are returning, according to exchange data. The MACD, while still below zero, is showing signs of weakening bearish momentum, which could support a short-term recovery.
Stellar Protocol Upgrade in Focus
Market participants are also eyeing the upcoming Stellar Protocol version 25 mainnet upgrade, scheduled for July 22. While Pi Network operates on its own infrastructure, it shares some technical roots with Stellar-based systems. The upgrade could boost sentiment across ecosystems connected to Stellar, potentially lending indirect support to PI. However, the token remains below the key $0.0800 resistance level, and the broader trend is still bearish.
Key Levels to Watch
On the downside, PI has a critical support level at $0.06793, the 161.8% Fibonacci extension. A break below that could expose the token to a drop toward $0.01463. On the upside, the first resistance stands at $0.09613, the 127.2% Fibonacci extension, followed by stronger resistance near $0.110. For now, the token trades in a narrow range, and the coming days will test whether the oversold RSI can trigger a sustained rally or if selling pressure will resume.
