Pi Network's Price Hinges on $0.07685 Support Level

Pi Network [PI] struggled to recover over the past two months, as sellers capped every attempt to regain upward momentum.

After weeks of selling pressure, the PI token established a base of support at $0.07685.

This was the first time since March that the altcoin had found stable support. Later on, the token surged up to $0.11139 in early August. However, that recovery lost momentum as each subsequent rally produced lower high prices.

Notably, the most recent low was $0.0935 on the 30th of September. Since then, the price has declined to $0.08048, which is now beneath the previous resistance level of $0.085.

Meanwhile, the RSI stands near 38. This shows that there are very weak signs of momentum in the market as sellers continue to have an upper hand over buyers.

The price appears to be headed for a test of the bottom at $0.07685. This is where both the July and October bottoms may form a potential double bottom formation.

A full confirmation of this pattern will require a larger rebound as well as a breakout above the neckline. If a daily close occurs below $0.07685, it could result in exposing a price target of $0.0705 and validate the bull’s set-up for failure.

Conversely, reclaiming $0.085 will show improvement in demand. As a result, this will provide a possible entry for long positions and potentially other opportunities for recovery targets at $0.0941 and $0.0982.

While volatility may rise ahead of protocol 28 implementation, it is important to note that the success or failure of this process does not automatically translate into sustainable growth for the network.

PI needs to have much more than just recovery based upon price action in order to increase the utility of PI. There are possibilities in other areas that will be explored through the partnership between PI and Open Standard.

These stablecoins can help reward the pioneers and open up use case options for all members of the community. As a result, most of these new technologies could cause increased user connections and transaction activity within the overall network.

They must, however, be built, implemented, and deployed in a way to support the main objectives of PI rather than replace them.

Compliance and practical use cases will shape future integration. Nevertheless, despite the partnership announcements, there is still no confirmation that there is going to be an immediate launch.

This simply means that time will tell whether or not the development of a stablecoin will help expand the ability of PI to facilitate payments. If successful, stablecoins will have expanded PI’s utility for making payments.