- Profit-taking follows Fed rate cut, triggering short-term selling pressure on Pi Network.
- Overbought technical indicators suggest weakening momentum after the recent price rally.
- Structural challenges like token unlocks and limited listings hinder sustainable price growth.
Pi Network’s recent rally turned heads after a sharp 30% climb in a week. The price jumped from yearly lows to touch $0.2795, marking the highest level since September. Traders cheered the comeback, but a strong resistance near $0.28 appears to have stopped the momentum. Analysts now warn that the rally could cool off soon as indicators flash signs of exhaustion.
Pi Network May Be Losing Momentum
Crypto analyst Marzell believes the recent Pi Network rally may be running out of fuel. According to him, three major factors could trigger a short-term pullback. The first reason points to a classic “buy the rumor, sell the news” setup. Traders began loading up on Pi before the Federal Reserve’s rate cut decision. The move was almost guaranteed, with over 97% confidence in Polymarket and CME FedWatch. Once the decision became official, many investors started taking profits, reducing buying pressure.
The second factor involves technical warning signs. Both the Relative Strength Index (RSI) and stochastic oscillator show overbought readings. These indicators often appear when an asset becomes overheated after a strong rally. When that happens, traders usually anticipate a correction or sideways movement.The third reason concerns structural challenges within the Pi ecosystem . Over 1.27 billion tokens will unlock over the next year, increasing supply pressure.
Positive Signs Behind the Scenes
Despite short-term caution, Pi Network continues to make steady progress behind the scenes. The project plans to roll out the Protocol 23 upgrade on its mainnet by the end of 2024. This upgrade could improve scalability and pave the way for greater functionality once the network fully launches.Another key step involves the ongoing KYC verification rollout, which aims to onboard millions of users. This effort will help verify identities and allow members to interact freely within the ecosystem.
Rumors also suggest that Pi Network recently joined the ISO 20022 group, aligning itself with major global payment standards. This move, if confirmed, would strengthen integration with international banking systems. In addition, Pi Network Ventures has announced an investment in OpenMind, an AI-focused company developing open-source technology for robotic learning and collaboration. This partnership signals growing interest in bridging blockchain innovation with artificial intelligence.
While these developments highlight progress, market sentiment remains cautious. For now, traders appear hesitant to push prices above the $0.28 resistance. Pi Network’s recent rally faces strong resistance and cooling momentum. Analysts warn of profit-taking and overbought signals. Structural challenges like token unlocks and limited listings also weigh on growth. Still, ongoing upgrades and partnerships offer hope for long-term recovery once fundamentals strengthen.
