The Pi Network token (PI) experienced a dramatic price surge followed by a sharp rejection at a key resistance level, highlighting a classic "sell-the-news" event following its mainnet upgrade. The altcoin rallied an impressive 43.1% from a low of $0.132, significantly outperforming market leaders Bitcoin (BTC) and Ethereum (ETH), which saw gains of 8.3% and 9.2% respectively in the same period.
The rally was fueled by anticipation of the network's shift to a decentralized mainnet, a move designed to transfer responsibility from developers to the community. This bullish momentum allowed PI to break out from a long-term descending wedge pattern, with technical analysis suggesting a potential price target in the $0.267 to $0.28 range.
However, the optimism was short-lived. The token faced fierce rejection at the $0.20 supply zone, which has now solidified as a confirmed resistance level. Following the mainnet event going live, PI's price reversed sharply, dropping roughly 10% in a single day. Analysts note that the high-volume surge into this key resistance, followed by immediate rejection, is often a sign of buyer exhaustion and a distribution phase where "smart money" sells into strength.
The market reaction suggests traders were pricing in expectations of instant ecosystem expansion and surging demand post-mainnet. Instead, adoption appears to be gradual, and the immediate absence of accelerated economic activity created a supply imbalance. Traders who had accumulated PI ahead of the event began closing positions, triggering the sell-off.
The current focus shifts to whether organic demand can develop at lower support levels between $0.1600 and $0.1700. For the bullish structure to remain intact, PI must convincingly close above the $0.20 resistance, which could then open a path toward $0.2500. Until then, the near-term bias remains cautiously bearish, aligned with the longer-term downtrend.
