Despite the upgrade efforts, Pi Network is still ignored by investors.

The price of Pi Network (PI) continues to move sideways for 11 consecutive days, holding steady above the important support zone of 0.2565 USD. Although nearly 13 million PI tokens have been withdrawn from centralized exchanges (CEX) in the past 24 hours and the development team just announced a series of DeFi features on Pi Testnet after the Token2049 event, the PI token has yet to show any clear recovery signals.

The expansion of the DeFi array of Pi Network is still "silent"

Co-founder of Pi Network, Nicolas Kokkalis, reactivated his X account last Friday, announcing the deployment of a series of new features including the decentralized exchange (DEX), AMM liquidity pools, and token creation tools, all operated in a testing environment on Pi Testnet. This move is seen as an important step in the development roadmap of the Pi ecosystem's smart contract, and is compatible with the latest protocol upgrade 23 of the platform.

The launch of DeFi features not only helps expand the application scope of Pi Network — from a coin mining project on mobile to a more practical ecosystem — but also demonstrates the efforts of the development team to increase the utility value of the PI token. However, as these features are still only operating on the Testnet, investor sentiment remains cautious, and the price of PI continues to fluctuate in the accumulation zone.

Reserves on the exchange are decreasing, but selling pressure is still present.

The amount of PI token on centralized exchanges has decreased, indicating that selling pressure is gradually cooling down, opening up opportunities for a new accumulation phase or even the next price increase. According to data from PiScan, in just the past 24 hours, a net of 12.90 million PI has been withdrawn from exchanges — equivalent to about 3% of the total 432.63 million PI circulating on CEX.

PI balance on CEX | Source: PiScanHowever, the risk of supply still exists as a large portion of the tokens remain off exchanges. Statistics from PiScan indicate that exchange wallets hold only 5.24% of the total circulating supply, equivalent to approximately 8.24 billion PI — a figure that shows the majority of tokens are still "inactive" in personal wallets or addresses outside of exchanges.

Pi Network Data | Source: PiScan## The risk of price decline encompasses the accumulation phase of PI

As of the time of writing this article on Tuesday, PI is still holding steady above the 0.2600 USD mark, continuing to fluctuate within a narrow range after a 6% drop on September 26. However, this accumulation phase is facing the risk of breaking down, as both trend momentum and interest from retail investors are showing signs of weakening.

On the daily chart, the RSI indicator is currently at 29 and is moving sideways around the oversold zone, clearly reflecting the exhaustion of buying pressure. However, the MACD line is approaching the signal line – a development that indicates the possibility of a bullish cross, which could open up signals for a bounce back in price momentum.

Daily chart PI/USDT | Source: TradingViewIf PI bounces back from the support zone of 0.2565 USD, the price may soon test the previous week's peak at 0.2796 USD, even aiming for the round mark of 0.3 USD. Conversely, losing the threshold of 0.2565 USD will increase selling pressure, pushing the price deeper into the zone of 0.2 USD.

SN_Nour