Pi Coin Is Pumping — Price Rally Could Extend If This Key Breakout Holds
Pi Coin (PI) worth has rallied almost 24% previously 24 hours at press time, chopping its month-to-month losses to about 4%. But even with this rebound, the token continues to be down over 40% previously three months, that means the broader downtrend hasn’t ended.
While the transfer seems spectacular, a number of alerts recommend that this is likely to be a short-term bounce inside a bigger bearish setup until the Pi Network token clears one important resistance stage.
Buying Momentum Fades Despite the Jump
PI’s worth has recovered sharply, however key indicators present that underlying power might not assist this rally for lengthy. Between October 6 and October 27, the PI price made a decrease high, whereas the Relative Strength Index (RSI), a measure of shopping for and promoting power, fashioned the next high.
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That sample is a hidden bearish divergence, which generally means the broader downtrend might proceed regardless of a short-term rise. This signifies that whereas costs are rebounding, they’re doing so inside a weak underlying construction.
The Money Flow Index (MFI), which tracks actual capital inflows, tells an identical story. Since October 24, the worth has made the next high, however the MFI has printed a decrease high, that means there’s much less new cash getting into the market whilst costs push greater.
This identical mixture appeared between September 3 and September 20, and the Pi Coin price dropped about 48% shortly after. While not a assure of a repeat, the sample means that this rally might lose steam as soon as shopping for strain slows.
Short-Term Charts Still Show Some Upside
Despite these bearish divergences, the short-term pattern nonetheless leaves room for a bit extra upside.
On the 4-hour chart, the 20-period Exponential Moving Average (EMA), a fast-reacting common that tracks current worth momentum, has crossed above the 50-period EMA, signaling a attainable short-term bullish part.
The 20-period EMA is now approaching the 100-period EMA, and if it crosses above, it might set off one other burst of shopping for. This kind of EMA crossover is commonly seen when merchants begin constructing short-term lengthy positions after a rebound.
If that occurs, Pi might rise towards $0.27, a close-by resistance stage.
Key Resistance Could Decide The Next Pi Coin Price Move
On the each day chart, Pi Coin remains inside a falling broadening wedge, which is often a bullish reversal sample. This construction typically varieties throughout prolonged downtrends and may sign that promoting strain is weakening.
Right now, the Pi Coin worth faces an important resistance zone at $0.28. It is value noting that whereas the shorter-term chart hints at a transfer in the direction of $0.27, a stronger rally will solely proceed post-clearing $0.28.
A each day candle shut above that key stage would affirm a breakout from the wedge and will open the way in which towards $0.36, a acquire of about 41% from present ranges.
However, if PI fails to clear this stage, sellers might return rapidly. A drop under $0.20 (a 20% drop) would expose the token to additional declines towards $0.15.
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