Pi Network Faces Strong Resistance Near $0.70, Struggling to Break Downtrend

The recent price movements of Pi Network indicate a challenging period following a parabolic bullish run in mid-May. The token is currently navigating a bearish environment with key support and resistance levels shaping its short term outlook. Pi Network has formed an inverted cup and handle pattern in the textbook on the 4-hour chart, signaling a classic bearish continuation. Trading below the 50-period moving average reflects the dominance of sellers in the current momentum. A break below $0.5547 could open the door for a decline to $0.40, indicating significant bearish risks.

Since mid-May, the price has consistently produced lower highs and lower lows, with resistance between $0.84 and $0.98 always stopping the upward momentum as it tries to recover Volume has fallen during retracements, indicating weak demand. The 50 EMA slops downwards, reinforcing the ongoing selling pressure. Overall, the trend remains weak and has a bearish structure. Attempts to regain the above $0.70 level have been met with selling pressure, preventing the formation of higher peaks. Consolidation and potential for re-accumulation After a sharp decline, Pi has found stability in the short term between $0.63 and $0.65, consolidating below the previous support level that has turned into resistance near $0.72. The volume remains low in recovery efforts, limiting the bullish momentum. Resistance levels near $0.77 and $1.10 continue to restrict price action, maintaining a neutral to bearish market structure until a clear breakout occurs with volume support. No EMA crossovers or significant momentum shifts are clearly observed, indicating that sellers are still in control of the current situation. However, active trading near key levels indicates that market participants are closely monitoring the next directional move. The absence of a significant increase in volume during the recovery underscores the prevailing cautious sentiment in the market. From another perspective: Supporting the ecosystem and market outlook From another perspective, Pi Network's recent announcement of a $100 million fund to support ecosystem development has added a fundamental catalyst. This capital injection aims to boost developer activity and broader adoption, potentially supporting price strength in the long term. Interest from development teams signals a growing ecosystem, which can attract new demand as these initiatives gain traction. Although this creates a positive context, technical risks still exist. Pi must break through the key resistance levels to create a long-term trend change. This has created a cautious optimism among investors who are considering the potential but remain hesitant due to the current bearish technical environment. Recent events in the ecosystem may represent a turning point for Pi, but the price action must first overcome the short term resistance level of $0.70 to $0.80. The future path of Pi Network is still uncertain as it struggles with the main support level of 0.63 dollars and the resistance level of 0.70 dollars. Currently, the existing technical setup favors sellers even though the expansion in the ecosystem shows prospects for the future.