• Pi Network continues to consolidate above a crucial support level for the third straight day.
• The Pi Core Team has announced the launch of the RPC server on testnet, enabling developers to explore smart contract functionality. 
• The technical outlook for PI is bearish as downside pressure mounts on the key support level.

Pi Network (PI) trades in the red at press time on Wednesday, threatening the $0.1736 support level. The launch of a Remote Procedure Call (RPC) server on the Pi Network testnet, which will enable smart contract functionality for developers, has failed to boost retail sentiment and demand. PiScan data shows a steady streak of user deposits exceeding 1.20 million PI tokens, suggesting persistent profit-taking by investors.

Technically, Pi Network is at risk of a deeper correction toward its all-time low if the sentiment delays revival.

Pi Network launches RPC server on testnet as a step forward to smart contracts

Pi Network announced in an X post on Wednesday the launch of its RPC server on the testnet, enabling developers to simulate, test, and deploy smart contracts on the Pi Network blockchain. These smart contracts will be exposed via a standard JSON-RPC endpoint and will standardize blockchain interactions, enabling potential integrations with wallets such as MetaMask and other Decentralized Applications (dApps). 

However, retail sentiment remains subdued due to ongoing second-mainnet migrations, frustration with KYC verifications, and the lack of full token liquidity. 

On the other hand, the Pi Scan data shows persistent downside pressure from user deposits, with 1.21 million Pi tokens now on Centralized Exchanges (CEXs). Additionally, the Pi Core Team offloaded 21.80 million Pi tokens, likely linked to the ongoing second migration, which permits users to deposit their PI holdings on CEXs, leading to increased supply pressure.

Technical outlook: Will Pi Network avoid further losses?

Pi Network remains under extreme downside pressure, holding ground at the $0.1736 support level. The near-term bias is mildly bearish as PI token holds below the 50- and 100-day Exponential Moving Averages (EMAs) at $0.1863 and $0.1952, respectively, while the distant 200-day average near $0.2663 caps the broader backdrop.

The PI token has been drifting around the $0.1736 support level for the third straight day this week, suggesting a lack of decisive momentum.

The Moving Average Convergence Divergence (MACD) line remains below its signal line and below the zero line, with a shallow negative histogram, suggesting subdued downside momentum rather than aggressive selling. The Relative Strength Index (RSI) at 44 remains below the midline, consistent with persistent but moderate bearish pressure.

On the downside, a daily close below $0.1736 would expose the previous swing low at $0.1556 from February 23. A deeper slide would then target the February 11 low at $0.1310, where buyers would be expected to respond to avoid a more pronounced bearish extension.

Initial resistance emerges at the 50-day EMA around $0.1863, followed by the 100-day EMA near $0.1952, where any bounce would meet a key supply band. A daily close above this zone would open the way toward the March 7 high at $0.2396.

(The technical analysis of this story was written with the help of an AI tool.)