PI Network Price: Is a 24% Breakout Rally Imminent?
Key Takeaways
Technical charts suggest PI Network (PI) is forming a cup-and-handle pattern, indicating a potential price rally. However, initial indicators point to a slight dip before a significant upward move.
Over the past 24 hours, PI has experienced a 2.85% decrease, adding to a prior monthly decline of 13%. Despite this recent downturn, analysis suggests a potential turnaround is on the horizon.
Technical indicators currently show a possible pathway for PI to regain bullish momentum.
Bullish Pattern in Play
A review of PI's 4-hour chart reveals the formation of a cup-and-handle pattern.
The recent price decrease occurred as the asset traded into the handle's resistance level.
Typically, a rally starts once the price surpasses the handle resistance and breaks through the higher resistance level. A successful breakout above this level could lead to a rally mirroring the prior downside drop, potentially resulting in gains of 24%, bringing PI back to the $0.48 level.
Potential Dip Before the Surge?
The Moving Average Convergence and Divergence (MACD) indicator is currently in negative territory, with the Signal Line below the MACD line. However, a shift from thick to light orange on the histogram suggests decreasing selling volume and a possible increase in buyer activity.
This pattern often indicates a potential rebound, especially if the crypto is trading towards the support level on the bullish pattern's handle.
The Money Flow Index (MFI) is also trending towards positive territory. Crossing into positive territory would signify increased liquidity within the market.
These inflows could boost bullish momentum and increase the likelihood of a substantial price increase in the coming days.
Community Sentiment
Community sentiment data indicates that 82% of 4.2 million investors anticipate a rally soon. Positive sentiment often drives liquidity and increases the probability of an upward trend.
Therefore, PI is likely to follow this path. However, traders should remain aware that broader market conditions will ultimately influence whether and when this rally occurs.