Pi Network's token has faced challenges recently but shows potential for a comeback. Crypto analysts spot positive technical signals, hinting at a rally towards the $1 mark in the coming weeks.
Since its historic peak at $3 in February, the Pi Network token has been caught in a downtrend. It has been moving below a descending trendline since April 12. However, recent price movements and technical indicators suggest a potential reversal of the situation.
Analysis of the daily chart for PI/USD reveals a significant increase in on-balance volume (OBV) over the past two days. This metric, considered as a leading indicator, implies an increase in buying pressure, even though the price remains stable for now. Such a divergence between price and OBV is often a precursor to an upcoming bullish breakout.
Furthermore, the red bars of Pi’s BBTrend indicator have gradually contracted, indicating a weakening selling pressure. This decrease in volatility suggests that the market is gearing up for a change in direction.
Currently trading at $0.591, the Pi token is below its downtrend line, which forms resistance around $0.605. However, if the bullish momentum strengthens and demand picks up, it could break through this level to target the $1.01 mark.
Conversely, a lack of rebound would raise concerns about a return to the historical low of $0.40.
The technical indicators seem to indicate that the worst is over for Pi Network. The discreet accumulation by investors and the decline in selling pressure suggest a possible short-term trend reversal.
If this trend continues, the Pi token could resume its upward trend and provide excellent opportunities for traders looking for a return to $1, or even beyond. It remains to be seen if the overall sentiment in the crypto market will align with these emerging bullish signals.
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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