Pi Network’s native token briefly bucked a generally sluggish market trend over the past several days, recording notable gains driven in part by positive developments within the project’s ecosystem. That momentum, however, was short-lived as selling pressure returned and pushed the token sharply lower.
PI Plummets
Over the past few months, the project’s Core Team announced significant protocol upgrades, moving from version 19.6 to version 21 by mid-March. Rumors have circulated about a potential deployment of version 22, but no official confirmation has been issued.
In addition to protocol work, the team has advanced efforts in areas such as artificial intelligence and identity verification. Reported milestones include the combination of AI and human input to complete more than 526 million verification tasks, a development that likely contributed to the token’s rally.
The token’s recovery began near $0.17 on April 26 and accelerated to reach approximately $0.20 by April 29, marking its highest level in over a month. That spike prompted bullish speculation from some analysts about the potential for a much larger upside.
However, the $0.20 level proved to be a strong resistance, and the price faced a swift rejection. PI initially retreated to $0.19 and then plunged back to just above $0.17 before finding buying interest. It now trades slightly above $0.175, though daily losses exceed 10% and its market capitalization has dropped to about $1.83 billion.
Perfect Setup for Long Liquidations
Commenting on the recent price action, popular X user Dao World highlighted that the $0.20 resistance coincides with the 200-day moving average (MA). The rejection pushed the price back toward the 100-day MA, which now serves as the first significant support level.
Dao World noted that a build-up of highly leveraged long positions during the rally created a “perfect setup for a long liquidation,” amplifying downside when the resistance held.
Broader market conditions likely added to the pressure. Bitcoin and many altcoins fell following a Federal Open Market Committee meeting in which the Federal Reserve left key interest rates unchanged, a development that triggered a market-wide reaction.
Despite the pullback, Dao World reassured the PI community that the token has not fallen below the 100-day MA. Holding this level could allow for a stronger rebound should market sentiment improve and selling pressure ease.