• Pi Network extends its recovery for the third consecutive day this week, bringing its gains to 35% so far this month.
• Demand for PI resurfaces as the community celebrates Pi Day on March 14, reflecting the first three digits of the mathematical constant Pi.
• PiScan data shows an outflow of roughly 5 million PI tokens from exchanges over 24 hours, suggesting intense retail demand.

Pi Network (PI) trades near $0.2300 at press time on Wednesday, inching closer to a crucial resistance as bulls look to extend the rally. The retail demand for PI is on the rise ahead of Pi Day on March 14, broadly reflecting optimism in the community amid accumulation from large investors and declining PI reserves on Centralized Exchanges (CEXs).

The technical outlook remains mixed as PI approaches a key crossroads that capped gains last week amid persistent but mild buying pressure.

Retail demand surge anticipates further upside

Consistent outflows from exchanges, while large wallet investors expand their PI holdings, reduce supply availability and boost retail sentiment surrounding Pi Network. PiScan data shows that 4.94 million PI tokens were withdrawn from CEXs over the last 24 hours, which aligns with the near 6% rise in the spot market. Typically, a reduction in CEXs' reserves reduces downside pressure, leading to a recovery in the token price.

Additionally, the largest transaction over the last 24 hours is a 5.46 million PI withdrawal by a single entity from the OKX exchange, expanding its holdings to 394 million PI tokens. 

Overall, the PI token demand shows a steady increase in the days leading up to Pi Day on Saturday, when the community celebrates March 14, corresponding to the first three digits of the mathematical constant Pi. 

Technical outlook: Will Pi Network reach $0.28?

Pi Network is approaching a crucial near-term resistance at $0.2396, which capped last week’s rally on Saturday and resulted in a 10% pullback on Sunday. The PI token’s roughly 10% recovery so far should secure a daily close above this level, skewing the pressure to the upside. 

On the upside, the potential breakout rally could test the 200-day Exponential Moving Average (EMA) at $0.2842.

The near-term bias is mildly bullish as PI holds a steady recovery above the broken descending trendline resistance near $0.1900. Additionally, an uptick in the 50-day and 100-day EMAs reaffirms the bullish bias in the short term.

Technical indicators on the daily chart suggest that the momentum supports the upside skew. The Moving Average Convergence Divergence (MACD) line is holding above its signal line in positive territory, with the histograms rising steadily, signalling persistent buying pressure. At the same time, the Relative Strength Index (RSI) at 68 remains below the overbought threshold and reflects firm bullish momentum.

Looking down, the initial support emerges at the area between the 100-day EMA at $0.1983 and the former broken trendline breakout at $0.1900. If a deeper pullback unfolds, PI could test the 50-day EMA at $0.1849.

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