Pi token [PI] has begun to turn around its downtrend on the price charts.

In fact, over the last four days, the token has gained by 20%. Interestingly though, the trading volume has also climbed lately.

Pi token [PI] has begun to turn around its downtrend on the price charts. In fact, over the last four days, the token has gained by 20%.

Interestingly though, the trading volume has also climbed lately. Here, it’s worth noting that it did not hold a candle to the volume seen a week ago, when PI clocked in a 114% rally in six days.

The price action was in stark contrast to the technical analysis indicators, which pointed to a strong bearish momentum. Together, the indicators and the price action showed that the market structure was shifting bullishly.

Data from Coinalyze revealed that bullish conviction was not high in the short term. The price rose by 14% in the last 24 hours and the Open Interest climbed by 17%. This seemed to be a positive sign – Speculative traders might be willing to go long as the short-term performance turned bullish.

It was not intense, and the funding rate was just barely above zero. Together, the data showed that short-term expectations were bullish, but not overheated. These expectations might be aided by Bitcoin [BTC] seeking to set new all-time highs.

On the 1-day chart, PI has retraced below the 78.6% Fibonacci retracement level. These levels were plotted based on the rally to $1.6 earlier this month. This rally breached the $0.745-level – A local high from April. This shifted the market structure bullishly.

The sudden rally and subsequent retracement meant that the 1-day timeframe did not show strong bullish momentum. The MACD was above the zero line, but the red histogram bars were a result of the quick retracement.

The inability of the bulls to defend the $0.8 retracement was a worry, but this worry was short-lived. At press time, PI was trading above the level once more, and could be set to rally higher.

The CMF was above +0.05 over the past ten days, and the A/D indicator has trended higher too. These were two signs of high buying pressure, a result of the trading volume surge on 11 and 12 May.

Zooming in on the 4-hour chart, we can see that a local resistance zone was present at $0.9. It was a bearish order block on the H4 timeframe, highlighted in red.

The volume indicators, which had been firmly bullish on the 1-day timeframe, were neutral on the 4-hour chart. Neither the CMF nor the A/D line revealed heightened buying pressure. In fact, the MACD was yet to form a bullish crossover above the zero line.

Therefore, unless we see a surge in demand in the short term, PI could struggle to rally past $0.9. On the other hand, a move beyond $0.9 and a hike in buying pressure could offer a buying opportunity.