Technical selling pressure across the cryptocurrency market continues to weigh heavily on Pi Network, where hopes for an immediate bullish breakout appear to be fading. During Wednesday's trading session, the PI token dropped sharply to test critical record-low support around $0.0704 before staging a modest recovery toward $0.0762. Despite this intraday bounce, persistent downside momentum keeps the threat of deeper declines firmly in focus for market participants.
Derivatives Activity Drops as Open Interest Plunges
Market data highlights declining engagement among leveraged participants. Figures from Blockworks show that PI futures Open Interest contracted to $7.56 million on Wednesday, down from $8.16 million recorded the prior day. This slide toward the $7.50 million threshold points to significant long liquidation and positional wipeouts as the spot price continues its descent. Under standard market dynamics, a simultaneous drop in open interest alongside a declining spot price reflects diminishing risk tolerance among traders and shrinking overall liquidity in the derivatives market.
Key Technical Levels and Moving Average Hurdles
After briefly touching the round psychological threshold of $0.0700 earlier in the session, Pi Network stabilized to trade above $0.0760. The token successfully defended immediate support at $0.0740, established by its October 15 low, demonstrating brief buying interest at those depths. However, the broader technical structure remains decidedly bearish. PI continues to trade well beneath its 50-day and 200-day Exponential Moving Averages, which sit at $0.0822 and $0.1134, respectively. Adding to the overhead supply, a descending trendline near $0.0779 reinforces the 50-day EMA resistance zone. Initial resistance caps any recovery around $0.0779 and $0.0822, while a more substantial structural hurdle aligns with the 50% Fibonacci retracement level of the downswing from $0.1394 to $0.0704, positioned at $0.1049.
Mixed Signals from Daily Momentum Indicators
Oscillators present a conflicted short-term picture. The Moving Average Convergence Divergence indicator is holding above its signal line, though it remains confined within negative territory. Concurrently, the Relative Strength Index has slid to 36, flipping below its neutral 50 centerline. This positioning indicates that sellers retain firm control over short-term price discovery, effectively limiting sustainable upward momentum.
Broader Crypto Complex Faces Macro and Midterm Headwinds
The sluggish performance of Pi Network mirrors weakness visible across major digital assets. Solana remains firmly under pressure, trading below $92 on Wednesday after shedding more than 3.5% over the week. Muted institutional inflows for US-listed spot Solana Exchange Traded Funds, combined with mounting short bets and overheated conditions, continue to restrict upside. Meanwhile, Bitcoin, Ethereum, and Ripple are struggling against strong bearish momentum. Bitcoin traded down nearly 2% below $76,000, testing its 200-day Exponential Moving Average baseline near $76,501. A failure to hold the nearby support zone around $76,466 could trigger accelerated selling. Interestingly, Bitcoin's pullback occurred alongside a softer US Dollar, an asset whose decline normally provides liquidity tailwinds to risk assets. Market jitters coincided with the US midterm election developments, where early returns indicated Democrats leading gains in both congressional houses. Ethereum remains suppressed under overhead resistance, and XRP continues to face rejection at the descending boundary of a falling channel formation.
