The cryptocurrency market took a sharp hit after the CLARITY Act failed, and many digital assets fell into red territory.

Pi Network’s native token is the worst performer in the top 100 club, down 14% in a day. Despite the decline, some analysts believe a bullish reversal could be closer than it appears.

PI Loses More Ground

As CryptoPotato reported, the US Senate failed to advance the landmark bill, known as the CLARITY Act, because it did not reach the necessary 60 votes. Although the development was largely expected, it triggered a broad correction, with Bitcoin (BTC) plunging to $75,000 and Ethereum (ETH) dipping below $2,400 after a 3% daily decline.

These drops, though, are no match for PI’s poor performance. The native cryptocurrency of the controversial project is the only one (from the biggest 100) to post a double-digit decline today (September 16) and currently trades around $0.083 (per CoinGecko), the lowest level since the start of August.

PI’s market capitalization tumbled under the $1 billion psychological mark and now stands at roughly $940 million. This makes it the 76th-largest cryptocurrency.

It is important to note that PI’s pullback comes despite the latest ecosystem development. X account BSCN revealed that the Core Team initiated protocol upgrade v27, starting with a Testnet2 implementation and planning to transition to Mainnet by the end of the week.

“Among other things, this protocol transition upgrades Pi Node Docker to V27.1.0 and aims to ensure the stability of the network’s infrastructure and prepare for future developments such as integration with Pi Dex. This protocol transition represents a major step toward decentralizing the network,”

Meanwhile, Pi Network’s official X account has not yet confirmed the upgrade.

Rebound Incoming?

The reality for PI may seem quite grim, yet certain analysts think a revival remains possible. X user Crypto With Gopal claimed the price has printed a double-bottom setup and is holding the $0.075-$0.085 support zone while forming higher lows.

“A clean reclaim above $0.10 could confirm bullish momentum and open the path toward the $0.14 target. Bulls are slowly regaining control after the prolonged downtrend,” he maintained.

PI’s Relative Strength Index (RSI) supports the bullish scenario. The ratio has plunged to an oversold territory of 23, suggesting that the token could be gearing up for a recovery. The index runs from 0 to 100, where anything above 70 is usually interpreted as a warning for an impending correction.

Source: CryptoPotato