Pi Network (PI) Price Prediction: Unclosed Contract Divergence Suggests Recovery, Fall to $0.32 or Rebound Towards $0.50?

The price of Pi coin is trapped in the mire of a Bear Market, hitting a historic low today (1) at 0.40003 USD, down 3.45% in the last 24 hours. However, considering it is forming a bullish divergence, the trend of the open contracts may determine its next move. Will Pi coin continue to fall towards 0.32 USD, or is there hope for a Rebound towards 0.50 USD?

1. Pi Network price falls to a historic low: Demand exhaustion and sellers unwilling to give up

(Source: Trading View)

For several weeks, traders holding Pi coin have been feeling anxious, expecting the price to fall to its lowest levels. Given that demand has dried up and sellers are unwilling to give up, this is to be expected. CoinGape pointed out in a recent analysis that if the price falls below $0.419, Pi coin could drop to $0.32. Since even a dip to $0.4003 did not attract buyers back, this possibility of decline still exists. CoinMarketCap data shows that the trading volume of the PI token in the past 24 hours was only $79 million, down 13% from Thursday.

Currently, the Fibonacci retracement levels indicate that if a new wave of selling occurs, a fall to $0.32 would not mark the end of the decline. On the contrary, a drop to $0.10 may happen.

2. RSI and 50-Day Moving Average: Potential Rebound Hope

However, the outlook is not all bleak, as some past patterns are worth reflecting on. Most importantly, after hitting a historical low, the 50-day moving average (SMA) often brings relief. In this case, the price of Pi coin has the opportunity to reach $0.50.

At the same time, the RSI indicator may provide some breathing room. The market is currently in an oversold state, which means sellers may be exhausted. If they are pushed out of the market, this is another reason why prices could still fall to $0.50.

3. Unclosed contracts show bullish divergence: traders are actively entering the market

Coinanalyze's data also supports the possibility of a rebound in Pi coin prices. This is because when prices fall, the number of open contracts is on the rise. In fact, the number of open contracts has surged to over $30 million. This indicates that even when prices are falling, traders are still actively entering the market.

When prices fall, shorting is often the obvious move for many traders. However, some of these declines are calm before a rebound. Therefore, it is not surprising that a few people go long. When this kind of divergence exists, traders may also believe that the price prediction for Pi Network will become bullish. This sentiment could support the price of Pi coin reaching $0.50.

However, if these open contracts are bearish, meaning traders are betting that the price will fall, then the end of the Pi coin decline may still be far off.

4. CEX Balance and Holder Behavior: Selling Pressure and Rebound Potential

Finally, the CEX balance supports bullish traders more than bearish traders. In the past 24 hours, over 6 million PI coins have left the exchange. If these holders do not sell at a low price, the price of PI coins may still have room for a rebound.

Conclusion:

Pi coin is currently at a critical turning point. Despite the price falling to an all-time low, the oversold RSI, the bullish divergence in open contracts, and the changes in CEX balances all suggest potential rebound opportunities. However, if the open contracts are bearish, or if holders continue to sell off, the decline of Pi coin may continue.