Pi Network Struggles Ahead of Protocol v28 Upgrade as Futures Open Interest Slumps to $8.23 Million

Pi Network is set to deploy Protocol v28 on its Mainnet, but fading retail interest and a drop in futures Open Interest keep the PI token depressed near $0.0782.

Selling pressure across the cryptocurrency market deepened on Thursday, pushing the native token of Pi Network down below a persistent long-term downward trendline. Softening technical indicators combined with a steep drop in retail participation across derivatives markets have left PI trading around $0.0782. This weakness comes despite the fact that Pi Network is gearing up to transition its Mainnet to Protocol v28 on Friday, a major scheduled operational milestone that has so far failed to ignite bullish momentum.

Protocol v28 Upgrade and Infrastructure Realities
Pi Network has scheduled its Mainnet upgrade to Protocol v28 for Friday, following an active deployment on its testnet2 environment where the build has already been operational. Node operators across the ecosystem were instructed to finalize all required software upgrades prior to Tuesday to maintain synchronization. This v28 release continues the network's ongoing enhancements rooted in the Stellar consensus framework, focusing strictly on backend functionality.

The upgrade does not modify user account balances or alter existing mining mechanics. Upgrades of this nature are engineered primarily to strengthen developer tooling, protocol efficiency, and network stability rather than serve as direct catalysts for token valuation. Historical price performance following the v27 release and earlier protocol revisions demonstrated a similar pattern, where underlying code improvements did not translate into immediate market appreciation for the token.

Derivatives Markets Reveal Fading Trader Engagement
Despite the fast-approaching protocol deployment, Pi Network is experiencing an undeniable decline in retail demand. Data compiled by Blockworks shows that Open Interest in PI futures contracts fell to $8.23 million on Thursday, marking a severe contraction from the $49.03 million recorded in the prior week. This sharp drop highlights a substantial reduction in the total notional value of active derivative contracts and reflects waning speculative involvement.

Concurrently, the funding rate for PI futures contracts remains marginally positive at 0.000050%. The combination of a minuscule positive funding rate and drastically depleted Open Interest points toward a mixed-to-bearish mindset among market participants. Traders appear reluctant to build aggressive long positions heading into the technical event, signaling widespread caution across the board.

Technical Indicators Point to Downside Risks
On the daily timeframe, PI continues to face significant overhead resistance and downward momentum. Trading at $0.0782, the asset remains suppressed beneath both its 50-day Exponential Moving Average at $0.0877 and its 200-day Exponential Moving Average at $0.1196. Sustained price action below these major moving averages reinforces a long-term bearish structure.

The price also remains capped under the descending trendline break level located at $0.0860, a barrier formed by connecting the peak prices recorded on June 20 and August 22. PI is presently testing a breakdown below the preceding week's trough of $0.0774. A verified daily close under this threshold could expose the previous swing low at $0.0704, with any deeper extension risking a slide toward unprecedented record lows.

Momentum oscillators reflect persistent weakness without showing signs of sudden capitulation. The Relative Strength Index is lingering near 35, while the Moving Average Convergence Divergence indicator sits firmly within negative territory. The MACD line remains beneath its signal line alongside a marginally contracting bearish histogram, which implies a steady, grinding downward drift rather than an accelerating selloff.

Should an upside recovery materialize, initial resistance will be encountered at the descending trendline zone around $0.0860. This region is reinforced by the 23.6% Fibonacci retracement level at $0.0867, calculated between the swing points of $0.1349 and $0.0704, and the 50-day EMA at $0.0877. Any near-term relief rally is expected to encounter substantial friction at these hurdles.

Macroeconomic Data and Crypto Market Contagion
The struggles seen in Pi Network mirror a wider slump across the digital asset sector triggered by hotter-than-anticipated United States inflation figures. The latest release of the US Consumer Price Index showed an annual headline inflation rate of 3.7%, outpacing the projected consensus of 3.6% and reigniting concerns over sustained monetary tightening. Core inflation, which omits volatile food and energy costs, printed at 2.6%.

Following the inflation print, top crypto assets retreated almost immediately. Glassnode identified the area near $80,000 as the most critical watchpoint for Bitcoin as macroeconomic pressures mount. In the altcoin space, privacy token Zcash extended its previous day's decline of roughly 6% to trade firmly in the red. Ripple and Stellar also suffered notable downturns on Thursday, having depreciated by more than 7% and 11% respectively over the course of the week. Both XRP and XLM dropped beneath vital technical support lines, highlighting widespread fragility throughout the broader market.

What this means for you
Continued declines in the PI token coupled with elevated US inflation data present higher risk profiles for cryptocurrency traders.

• For Crypto Investors: PI futures Open Interest collapsed from $49.03 million to $8.23 million, underscoring weak retail demand. A confirmed breakdown beneath $0.0774 could push the asset toward new all-time lows.
• For Pi Node Operators: Active node participants were required to complete all mandatory technical updates ahead of Tuesday. The Friday transition to Protocol v28 will bolster network resilience without altering personal account balances or mining parameters.
• Broader Market Impact: Headline US CPI inflation printing at 3.7% dampens expectations for monetary easing. This ongoing macroeconomic headwind continues to depress liquidity across major tokens like Bitcoin, XRP, and XLM.
• For Active Traders: Strong overhead friction is established by the 50-day EMA at $0.0877 and the trendline at $0.0860. Any short-term price rebounds are expected to face heavy selling pressure within this resistance zone.

Why this happened
The decline in Pi Network and the broader cryptocurrency complex stems from technical exhaustion, evaporating derivatives demand, and stronger-than-expected macroeconomic headwinds.

• Nature of the Upgrade: Protocol v28 focuses strictly on core infrastructure and network stability rather than tokenomics or mining modifications. As observed during the earlier v27 rollout, backend improvements rarely translate into immediate commercial price appreciation.
• Derivatives Capital Outflow: A severe drop in PI futures Open Interest signals that speculative retail participation has evaporated ahead of the event. A barely positive funding rate of 0.000050% reflects deep caution among active futures traders.
• Hotter US Inflation: The annual US Consumer Price Index registered at 3.7% against projections of 3.6%. Higher headline inflation raises the probability of tighter monetary conditions, sparking liquidations across risk assets such as Bitcoin, XRP, and XLM.

Questions & Answers

1. When is Pi Network scheduled to deploy the Protocol v28 upgrade on Mainnet?
Pi Network is scheduled to upgrade its Mainnet to Protocol v28 on Friday, following testing on testnet2.

2. Does the Protocol v28 upgrade affect mining rates or token balances?
No, the v28 release focuses entirely on developer tools and network stability, leaving user balances and mining mechanics unchanged.

3. How much has PI futures Open Interest fallen recently?
Blockworks data shows that PI futures Open Interest tumbled from $49.03 million last week to $8.23 million on Thursday.

4. What are the key technical support and resistance levels for the PI token?
Key support sits at $0.0774 and the swing low of $0.0704, while initial resistance is clustered between $0.0860 and the 50-day EMA at $0.0877.

5. How did the latest US inflation data impact the broader cryptocurrency market?
US CPI coming in higher than expected at 3.7% triggered declines across major assets including Bitcoin, Zcash, XRP, and Stellar.

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