PI Network (PI) Shows First Signs of Recovery as Key Reversal Pattern Emerges

The broader cryptocurrency market has continued to trade under pressure in recent weeks, mirroring the sector-wide slowdown triggered by Bitcoin’s loss of a major psychological price level. Sentiment remains fragile, liquidity is thin, and most altcoins are struggling to reclaim critical technical zones. Yet, despite this challenging backdrop, PI Network’s PI token is beginning to show early signs of structural improvement—driven in part by a notable bullish reversal pattern forming on the daily chart.

Since early November, PI has attempted to stabilize after months of persistent decline. The token found a temporary bottom around the $0.19–$0.20 region, where buyers gradually stepped in, forming a rounded accumulation base. More importantly, an inverse Head and Shoulders structure has now formed across this period—a classic reversal signal that often marks exhaustion of a downtrend.

The left shoulder developed in late October as PI slipped into the $0.21 zone before recovering modestly. The head followed in early November, with a deeper wick into the $0.19 region, reflecting a brief liquidity flush. The right shoulder formed between mid- and late November as price once again retested the $0.21 area but held firmly above the prior low. This consistent defense of higher lows signals strengthening demand.

The neckline of this formation sits roughly around $0.26–$0.27. Price briefly tested this zone in late November before pulling back slightly, suggesting the market is in the early stages of deciding whether it has enough momentum to confirm a breakout.

Bullish Scenario

A decisive break and close above the $0.27 neckline would validate the inverse Head and Shoulders pattern. Such a breakout could trigger a measured move target toward the $0.32–$0.34 region, where the 100-day and 200-day EMAs currently converge. These higher-timeframe moving averages have acted as dynamic resistance for months, and reclaiming them would significantly strengthen PI’s mid-term outlook.

Momentum indicators are beginning to tilt favorably as well, with higher lows forming on shorter-term oscillators and improving volume on upward moves. If market conditions stabilize more broadly, PI could extend gains toward the $0.36–$0.40 zone, where the next major supply cluster sits.

Bearish Scenario

However, failure to break the neckline convincingly would leave PI vulnerable to renewed selling pressure. The immediate support remains at $0.22–$0.21. A daily close below this zone would invalidate the right shoulder and likely send the token back toward the $0.19 low. Losing this level could reopen the door to deeper downside, especially if market-wide sentiment deteriorates further.

Additionally, all major EMAs—20-day through 200-day—are still positioned above current price, signaling that the broader trend remains bearish despite short-term improvements. Until PI reclaims these levels with sustained volume, rallies may face stiff resistance.

Outlook

PI Network is at a key level. The inverse Head and Shoulders shows the first genuine shift in structure after months of decline, but confirmation is essential before any meaningful trend reversal can be declared. Traders will be watching the $0.27 neckline closely in the coming days to determine whether PI can transition from stabilization to recovery, or whether the recent bounce is just another relief rally within a broader downtrend.