As Pi Coin (PI) announced news of a partnership related to the OpenUSD (OUSD) stablecoin, its price is facing a key moving average resistance. Crypto media outlet CoinGape reported that if Pi Coin breaks above its 50-day moving average, the trend could shift from bearish to bullish.

Price and Volume Status

According to CoinMarketCap, Pi Coin was trading at $0.088 as of October 4, Korea time. Citing CoinMarketCap data, CoinGape reported that trading volume during the same period rose 19% to $5.88 million.

Details of the OUSD Partnership

With the Pi Core Team disclosing its partnership with Open Standard, market attention has turned to whether Pi Coin can break above its key moving averages. Pi Network recently announced via X that it is partnering with the company that developed the OUSD stablecoin.

According to earlier reports by CoinGape, Open Standard is backed by major traditional finance companies including Coinbase, Ripple, Visa, and Mastercard.

According to the Pi Core Team's explanation cited by CoinGape, Pi Network plans to utilize OUSD's reward structure, which supports ecosystem growth. Pi Network stated that it will review various reward programs available to Pioneers through OUSD, while also aiming to expand its use across the entire ecosystem.

Partnership Follows Consecutive Updates

This OUSD partnership comes after Pi Network completed two major updates. According to CoinGape, these updates enabled approximately 1 million Pioneers to gain new access. Pi Network completed its v27 upgrade on September 15 (local time), with the v28 upgrade scheduled for October 16 (local time).

Derivatives Market: Open Interest Declines, Short Liquidations Rise

Pi Coin's open interest is on a downward trend. According to CoinGape, citing data from CoinAnalyze, open interest shrank from $36 million in mid-September (local time) to $25 million at the time of writing.

Meanwhile, liquidations of short positions have increased. Based on CoinAnalyze data, CoinGape reported that since mid-September (local time), the size of short position liquidations has exceeded that of long position liquidations. CoinGape analyzed that these short liquidations were one of the factors driving Pi Coin's price upward.

Indeed, Pi Coin's price rose from $0.080 on September 18 (local time) to $0.090 on September 30 (local time). At the time, the bullish sentiment across the overall market reportedly led short-position investors to close their positions.

CoinGape also noted that the funding rate remaining positive is a signal that market sentiment around Pi Coin is still bullish, as investors holding long positions are paying fees to those holding short positions to maintain their positions.

Technical Analysis: Bullish and Bearish Signals Coexist

However, bearish signals have also appeared in the price trend. According to CoinGape, Pi Coin's price fell below its short-term moving averages, closing below both the 20-day and 50-day moving averages.

CoinGape forecast that if the downtrend continues, Pi Coin's price could test the $0.085 support level. If it fails to hold this price level, there is a possibility of further decline to $0.080.

A sell signal also appeared on the Relative Strength Index (RSI), as the RSI line fell below its signal line, indicating a bearish signal for the future price movement.

Conversely, CoinGape projected that if Pi Coin's price closes above the 50-day moving average, it could signal a shift from a bearish to a bullish trend. It added that the $0.10 level, where the 100-day moving average sits, could then become the next price target.

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