After reaching a peak of $2.99 on February 27, the Pi network has dropped by almost 40% in the past two weeks. Technical indicators indicate a stabilization of its momentum, yet the future remains uncertain. Explore the key insights of this trending altcoin.
The Directional Movement Index (DMI) data of the Pi network indicates that the Average Directional Index (ADX) has dropped from 36.5 to 30.6 over the past two days. Although a value over 25 still signals a strong trend, the decrease suggests that the momentum behind this upward movement is weakening.
Simultaneously, the +DI has surged from 12.3 to 27.3, while the -DI has dropped from 29.3 to 14.9, highlighting a significant increase in buying pressure over the past two days. However, with a stable +DI since yesterday and a declining ADX, this strong positive momentum could fade without necessarily leading to a trend reversal.
Furthermore, Ichimoku in 4H still remains red and therefore bearish. In addition to encountering resistance at the trend line, the token is hitting the top of its cloud for several days now.
As long as Pi does not break $1.7, it will continue its medium-term downward trend. However, the cloud has turned green in 2H, which may indicate that the token may make one last attempt to reverse the trend in the next few hours.
The Relative Strength Index (RSI) of the Pi network has sharply risen from 19.5 four days ago to 60.90 today. This robust rebound from oversold levels suggests a resurgence of buyer control. However, with an RSI of 60.90, Pi has not yet reached the overbought zone above 70. Historically, this level has acted as a barrier, triggering profit-taking or temporary slowdowns.
If the RSI stabilizes near its current level, the Pi network could consolidate before resuming its upward move. Nevertheless, a breach above 70 would signal an extreme bullish momentum, although it also increases the risks of a short-term correction.
Currently at 48, the PI token has experienced heavy selling. The Stochastic RSI is approaching the oversold zone in 2, 3, and 4H. Conversely, the Chaikin Money Flow is rising, possibly indicating a bullish divergence in the short term, as capital flows in during this other investors’ sale.
Currently, the Pi network is trading within a key range, facing resistance at $1.82 while being supported at $1.57. If the current uptrend continues and buyers manage to surpass $1.82, the next target would be $1.98.
A breakthrough beyond this level could pave the way for a more significant upward move, especially if the Pi network regains the positive momentum seen last month. In this scenario, the price could extend to $2.37, strengthening a more bullish outlook and a potential new ATH.
However, conquering these levels will require sustained buying pressure and confirmation of breaking above $1.82.
On the downside, if the Pi network’s trend reverses, it could retest its immediate support at $1.57. Losing this level would weaken the bullish structure and expose the price to further declines, potentially down to $1.35.
If selling pressure intensifies, PI could even drop to $1.23 or 74 cents, marking a deeper correction. The strength of support at $1.57 will be crucial in determining whether the current bullish trend holds or if the PI network enters a more pronounced pullback phase.
It is possible to buy the token directly on Bitget, one of the best exchanges. Here is a practical guide to buying PI and receiving a bonus :
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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