Pi Coin's Potential Breakout: Key Price Levels to Watch
Pi Coin's Downtrend May Be Nearing an End
Pi Coin has been navigating a persistent downtrend, struggling to regain upward momentum amid cautious market sentiment.
However, there are indications of a possible breakout. Technical analysis suggests that selling pressure is diminishing, potentially paving the way for an upward move.
Technical Indicators Suggest a Shift
The Relative Strength Index (RSI) is currently forming an exaggerated bullish divergence, a subtle pattern indicating that the existing downtrend is losing steam. While not a confirmation of an immediate reversal, it suggests sellers are becoming exhausted.
This sets the stage for a potential breakout. If investor sentiment shifts, buyers could gradually regain control. A stable market could allow Pi Coin to transition from consolidation to a fresh rally.
Further supporting the bullish outlook is the Moving Average Convergence Divergence (MACD), which has maintained a bullish crossover for nearly a month, resisting bearish attempts. This suggests that upward momentum remains active despite short-term volatility.
Despite a brief fake bearish crossover, the MACD remains bullish, demonstrating resilience among Pi Coin holders. This suggests buyers are prepared to defend key levels, potentially facilitating a breakout above immediate resistance.
Key Price Levels to Watch
Currently, Pi Coin is priced at $0.353, just below the critical resistance level of $0.360. Successfully flipping this level into support could trigger a rally toward $0.381, the first step in reversing the current downtrend.
Such a breakout would effectively end the ongoing decline. Considering the RSI divergence and the MACD’s bullish outlook, this scenario seems increasingly plausible, contingent on neutral to positive broader market conditions.
However, risks persist. Should bullish momentum falter, Pi Coin could slip below $0.351 and decline to $0.340. A breach of this level would raise the possibility of testing its all-time low, invalidating the bullish outlook and causing concern among investors.