Pi Network's Wild Ride: From 70% Crash to Bullish Rebound?

From May's Highs to July's Lows

Hang on tight, crypto fans! Pi Network (PI) took a nosedive, crashing a whopping 70% from its May peak of $1.67. It's been a brutal ride down, with the token stuck in a relentless downtrend, hitting lower highs and lower lows. Just recently, it found some shaky ground around $0.45.

Bullish RSI Divergence: A Glimmer of Hope?

But wait, there's a twist! PI is flashing early signs of a comeback with a bullish RSI divergence on the daily chart. Even as the price hit new lows in late June and early July, the RSI started showing higher lows, hinting that the bears might be losing steam. This classic divergence could be the spark for a trend reversal or at least a short-term relief rally. Exciting times ahead?

Support and Resistance: The Next Moves

Right now, PI is trading around $0.4575, right on a new support level after breaking down from the $0.50-$0.52 zone. If this divergence plays out, keep your eyes peeled for resistance around that same zone. That's where the trapped longs from the last breakdown might try to unload, creating some serious selling pressure. But if the bulls can muster some strength, PI could surge towards $0.65, echoing the spike we saw on June 25. Buckle up!

Unlock Pressure: A Potential Roadblock

Hold on though, there's a catch. Pi Network is facing some heavy token unlock pressure this month. PiScan reports that about 219 million PI will be unleashed throughout July, with a day-one unlock on July 4 already dumping 19.2 million PI into circulation. That's roughly 4% of the current circulating supply! This flood of tokens could throw a wrench in the works and trigger even more sell pressure. It's a wild ride, folks, and anything can happen!