Pi Network price is falling amid immense selling pressure that has pushed it below the support level of $0.143. Open interest has shed $9.4 million as retail demand weakens even when the network is recording an increase in decentralized application (dApp) activity following the launch of CiDi Games.
Pi Network Tumbles Below Support as Retail Demand Weakens
Pi Network lost support at the $0.143 price after massive liquidations across the broader market that saw $1.8 billion wiped out on June 3. These liquidations have pushed the crypto market sentiment into “extreme fear,” and retail demand for Pi Coin is no longer present.
The last time that PI dropped below $0.143 was on February 11, and the price later crashed to an all-time low. Pi Coin is currently 6.7% shy of this record low.
Pi Network’s open interest has also dropped from $35.42 million on May 6 to $26.38 million on June 3, shedding $9.4 million in four weeks. This drop shows that traders are not opening new positions and they are instead closing the existing ones or being flushed out through liquidations.
Past data shows that the Pi Network price moves in tandem with OI. The OI dropped from $30.68 million to $20.83 million between March 20 and March 27, and the price moved from $0.20 to $0.17 within the same period. The price may continue to drop as long as this OI does not rise to show new demand.
Pi Network’s dApp Activity Spikes After Upgrades
Pi Network has expanded into Web3 Gaming through CiDi Games that has amassed more than $81,000 users, according to an X post shared by the Pi Core team.
The launch of CiDi Games comes after ongoing upgrades on the Pi Network since May, marking another step taken by this team to bring smart contracts that may help the Pi Network price remain steady even when there is no retail demand.
The dApp activity has also led to 3.1 million Pi Coins being staked, contributing to a bullish long-term Pi Network price forecast as supply saturation eases.
Technical Indicator Signals Bullish Divergence, But Weak Demand Caps Upside
Pi Network’s daily chart shows a bullish divergence. The AO bars that are green but on the negative side have been shrinking for five straight days to show that the bearish momentum is growing weak, even after the price dropped from $0.153 to $0.13.
When the AO is reading bullish, but the price is dropping, it shows there is a bullish divergence where those who are selling are starting to become exhausted. The RSI reading of 32 confirms this exhaustion on the seller’s side.
Pi Coin might still drop to test the all-time low of $0.130 that now acts as a psychological support level if buyers remain hesitant. But these record-low levels usually draw in new buyers who believe the bottom is in and the price will rise.
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