Decline Despite Smart Contract Upgrade Good News? The Decisive Reason Why Pi Coin (PI) Failed to Rebound

▲ Pi Network/Source: X ©

Despite Pi Network (PI) flawlessly passing the final testnet phase of its core upgrade, it reversed downwards, blocked by a major resistance level.

According to investment media FXStreet on September 22 (local time), PI turned bearish from its intraday high of $0.0947 recorded on Tuesday, giving back nearly 5% of the previous day's rebound and trading around $0.0890.

In terms of network fundamentals, clear progress has been confirmed. According to the Pi Network testnet monitor, Protocol v27 successfully completed its final phase, processing 250 transactions per block without a single failure. Following Protocol v26, which supports advanced decentralized applications, the v27 upgrade, once deployed to the mainnet, is expected to fully introduce smart contract authentication capabilities.

However, from a technical analysis perspective, PI remains trapped in a bearish trend. Unable to surpass the 50-day Exponential Moving Average (EMA) at $0.0923, both the 100-day EMA ($0.1021) and the 200-day EMA ($0.1263) are trending downwards, exerting strong downward pressure. Price recovery repeatedly falters below the 50-day EMA and the psychological resistance level of $0.1000.

Momentum indicators also show a somewhat subdued picture. On the daily chart, the Relative Strength Index (RSI) hovers around 47, and the Moving Average Convergence Divergence (MACD) is below the zero line and its signal line. However, the MACD's negative histogram is gradually shrinking, suggesting a possibility of some price stabilization after the recent sharp decline.

The short-term market outlook will depend on whether PI can firmly settle above the 50-day EMA. A decisive break above the 50-day EMA at $0.0923 could lead to an attempt to rebound to the Fibonacci 50% retracement level of $0.0990, which lies within the $0.1394 to $0.0704 range. On the other hand, key downside support levels are the Fibonacci 23.6% retracement at $0.0827 and the July 31 low of $0.0801. If these levels break, there is a risk of falling to the all-time low of $0.0704.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*