Pi Network steadies above $0.0853 while broader crypto rally fades

Key takeaways

• On Wednesday, PI sits close to $0.0900 and retains a mild upward bias while holding above the critical $0.0853 support.
• After last week's double-digit gains, the broader crypto space is retreating on profit-taking.
• A push beyond $0.1022 could set up a move toward $0.1204.

PI continues to move modestly higher on Wednesday, changing hands around $0.0900 and staying above a key technical support.

At the same time, the broader digital-asset market is seeing its rebound fade as investors cash in on last week's strong gains. PI's technical indicators are still mixed, which points to a lack of decisive buying pressure.

Profit-taking puts the brakes on the crypto rally

Digital currencies have been drifting lower this week, following a stretch in which several major assets posted double-digit gains.

According to CoinGlass, close to $373 million in leveraged positions were liquidated in the past 24 hours. Long positions made up $310 million of that sum, showing that the pullback caught bullish traders unprepared.

The heavy concentration of long liquidations suggests renewed selling pressure, with investors cutting risk and locking in profits from the recent advance.

Even with the pullback, sentiment across the market remains firmly positive. CoinMarketCap's Crypto Fear and Greed Index was at 80 on Wednesday, squarely inside the “extreme greed” zone.

That level indicates bullishness is still present even as traders debate whether the current slide is a brief correction or the start of a broader downturn.

Pi Network defends $0.0853 support

Pi Network is changing hands near $0.0900 at the time of writing, which leaves its near-term view neutral.

The token stays above the 23.6% Fibonacci retracement at $0.0853. That level is based on PI's decline from the $0.1341 peak to the $0.0703 swing low.

As long as PI trades above $0.0853, buyers could still have a chance to push the recovery further. The token, though, needs greater momentum to break through the resistance near its current price.

The next major hurdle for Pi Network is the 50% Fibonacci retracement at $0.1022.

That area rejected PI's recovery attempt in mid-July, making it an important potential supply zone. A firm daily close above $0.1022 could boost the bullish outlook and lead the advance toward the 78.6% Fibonacci retracement at $0.1204.

A breakout of that kind would also lift PI above the psychologically significant $0.1000 level, likely drawing in additional buying interest.

Pi Network's momentum indicators are showing signs of stabilizing but have not confirmed a strong bullish trend yet.

The Moving Average Convergence Divergence indicator is still just above its signal line on the daily chart. That setup suggests only a mild bullish lean, with the slim gap between the lines pointing to weak momentum.

The Relative Strength Index, meanwhile, is around 51. That neutral reading implies buyers and sellers are fairly balanced, leaving PI sensitive to moves in the wider market.

The support to watch remains the Fibonacci level at $0.0853. A confirmed daily close below it could undermine PI's near-term recovery outlook and intensify selling pressure, with the token possibly revisiting the $0.0703 swing low.

Conversely, if PI keeps consolidating above $0.0853, another attempt at the $0.1022 resistance would remain possible.