After weeks of decline, the PI token made a bullish breakthrough last week, but the rally quickly faded, indicating a potential "dead cat bounce." What implications does this have for the future of the PI project ?
Although PI‘s rebound seemed to signal a trend reversal, technical indicators reveal a completely different reality. The Smart Money Index of PI suggests the recent breakout was merely a false start, followed by another sharp decline.
The data from the token’s daily chart is particularly telling. With a Balance of Power (BoP) at -0.84, it indicates sustained selling pressure, signaling a lack of investor confidence. This negative figure confirms the bearish momentum that now threatens to push PI toward its all-time low.
Furthermore, PI’s MACD indicator shows a blue line below the orange line, a typical configuration for bearish momentum. This trend could intensify and exacerbate the downward pressure on PI’s price.
A sell signal has reappeared on the 12H timeframe, while the token has failed to cross through its Ichimoku cloud. For now, the token remains bearish and cannot break through its key resistance levels.
If this bearish trend persists, PI could continue its descent, inflicting heavy losses on investors who bet on the previous breakthrough. In this scenario, the altcoin could retest its all-time low of $0.40.
However, a reversal in market sentiment and increased buying activity could allow PI to climb back up to $0.66. Traders will closely monitor the evolution of these crucial support and resistance levels for the project’s future.
Ultimately, PI’s supposed breakthrough was merely false hope, masking a persistent bearish dynamic that now threatens to sink the altcoin to unprecedented levels. Investors would be well advised to remain cautious in this fragile situation.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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