Pi Network (PI) Price Corrects Sharply Post-$100M Fund News; Analyst Cites “Overbought Euphoria”

• Pi Network (PI) price corrected over 28% (from $1.53 to $0.8447) after its $100M fund news
• Analyst BOB on X attributes PI drop to “overbought euphoria,” citing RSI above 90 pre-fall
• PI recovery to $1.50+ hinges on Pi Network Ventures utility & major CEX listings (Binance)

Pi Network (PI) has experienced a sharp correction after what should have been bullish news, the announcement of a $100 million venture fund aimed at accelerating development on its mobile-first blockchain. 

Instead of rallying on the news, PI dropped more than 28% in 24 hours, falling from its local high of $1.53 to a recent low of $0.8447. The token now trades at $0.8647, slightly off its intraday bottom, but still deep in the red.

Overheated Rally Led to Predictable Exhaustion, Says Analyst BOB

According to crypto analyst BOB on X , the market was caught in an “overbought euphoria” following the hype around the Pi Network Ventures announcement.

With RSI crossing 90 on the 4H chart during the pump to $1.53, PI was in dangerously overheated territory. The correction was brutal but predictable. The analyst noted:

“Short-term might bleed more, especially with those token unlocks incoming. But longer-term… if the fund delivers utility and a Binance or Coinbase listing happens, $PI could reclaim $1.50+ again by month-end.”

Related: Pi Coin (PI) Price Prediction for May 16

Pi Network Ventures: Aiming for Ecosystem Growth Like a VC

Pi Network’s $100M initiative, formally known as Pi Network Ventures, is intended to inject vitality into the Pi ecosystem. It plans to do this by investing in startups across various sectors, including fintech, AI, social applications, and marketplaces. 

The draft indicates that, unlike some typical crypto funds, Pi Network Ventures aims to operate with the due diligence and early-stage innovation focus of a traditional Silicon Valley venture capital firm. 

PI Technical Analysis: Bearish Pressure Dominates, Key Levels Emerge

The Relative Strength Index (RSI) has dropped from extremely overbought levels (90+) to 42.15, just above oversold territory, indicating a cooling phase but no strong bullish reversal yet.

On the other hand, the Bollinger Bands (BB) on the 4H chart are expanding downward, reflecting rising volatility and bearish momentum. 

Source: TradingView

Price is now sitting below the BB median (20-SMA) of $1.0145, suggesting bearish pressure dominates. The lower band sits at $0.7033, which could act as the next major support. A breakdown below $0.70 would open the door to $0.60–$0.58, where buyers may step in.

Related: Analyst Flags Major Risk in Pi Network, Draws Comparisons to Terra Luna 2022 Crash

Meanwhile, a break above $1.32 (upper BB) could then lead to a retest of $1.50, and potentially $2.50 by Q4, assuming Pi Network Ventures begins delivering real utility and a CEX listing materializes.