PI Price Clings to a Key Support Level: Bounce or Break?

Pi Coin is fluctuating near an important support level after a slow trading week. At the time of writing, PI price stands at 0.4725 USD, attempting to hold above 0.4452 USD.

Although on-chain indicators do not show strong certainty in either direction, some signs of weakening downward momentum are beginning to emerge.

Open Interest and Funding Rate Signal a Pause

PI price is showing signs of hesitation. Total Open Interest on Coinalyze (in the 4-hour timeframe) is hovering around 10.09 million USD and does not indicate a clear direction in recent days. This means traders are not actively building new buy or sell positions, showing hesitation.

Meanwhile, the Aggregate Funding Rate has increased to +0.0274, and the Predicted Funding Rate has spiked to +0.0516. Simply put, this means Pi Coin buy positions are slightly dominant and ready to pay higher fees to maintain their positions, which is typically a bullish sign.

Open Interest refers to the total number of unresolved contracts in the market. Increasing Open Interest typically confirms more market participants, supporting the current trend. The Funding Rate is a periodic fee paid between buy and sell traders. A positive value means buy positions are dominant; a negative value indicates sell positions are controlling.

Overall, flat Open Interest with increasing Funding Rate suggests a slight buying trend, but for Pi Coin, it lacks strong certainty.

Bear Power is Weakening

With increasing Funding Rate and stable Open Interest, the market slightly leans towards buying but lacks certainty. This hesitation is reflected in the Bull Bear Power indicator, part of the Elder Ray Index, which tracks buyer/seller strength in the market.

At the time of writing, Bear Power continues to weaken, signaling that downward momentum is fading.

PI Price Analysis: Key Support Remains Intact

Pi Coin (PI) is currently trading at 0.4725 USD, fluctuating just above the critical support level at 0.4452 USD. This level is determined by the Fibonacci retracement tool, drawn from the late June peak to the July 6th dip.

Fibonacci retracement is a technical tool traders use to identify potential support and resistance levels by measuring the extent of price correction from a recent movement.

So far, this support level has held firm despite PI's broader downward trend. If it breaks below 0.4452 USD, Pi Coin may face a stronger correction to the next key support level at 0.4001 USD.

Conversely, if momentum increases, the next resistance level is 0.4974 USD, a level PI price has been rejected several times. If closing above 0.4974 USD daily, it could reverse the short-term structure to bullish, invalidating the bearish hypothesis.