PI Network (PI) is Poised for a Breakout, Targeting $1

Key Highlights:

* PI has been consolidating in the $0.50–$0.70 range for the last couple of weeks. This can often be seen as an accumulation zone, and just like those previous phases, this phase presents an opportunity for a serious breakout.

* A closely observed technical indicator suggests that PI might be on the brink of an important turning point, as several factors align to indicate a major price surge could be emerging.

* After a period of consolidation, PI is showing signs of increased volatility, which can be seen in the 5-hour chart. This increased volatility might be a prelude to a breakout.

(Chart: TradingView)

* As seen in the chart, the $0.70 level is serving as a crucial resistance zone. If PI manages to break through this barrier, it could quickly reach the Fib 1.272 level, setting the stage for a substantial price rally.

* Moreover, the chart pattern reveals that a breakout above $0.70 could pave the way for an explosive price acceleration.

* However, it’s worth noting that there isn’t much hype surrounding the possibility of a “big pump” in the near future.

Key Point: 6.1 million PI tokens are now set to be unlocked.

The large unlock event is likely to keep the price of PI down for the foreseeable future.

Often token unlocks cause the sell off as early investors or insiders may be selling their position to quickly cash out on the gains they made during the token’s development.

The implication of this is that the selling pressure will increase, and with no immediate support available below the current levels of PI price, it can tank further if selling picks up.

Lacking support to the current or lower levels, the probability of price testing lower ones becomes greater as the unlock sets into motion a rush of selling activity.

(Chart: Token Unlocks)

Key Point: PI has a weaker support structure, as there is no strong structure to fall back on in the intermediate term.

If it fails to hold above $0.30, it would be a critical test for the token, as this level could signal that the bearish momentum could hold even more.

Key Point: PI has been oscillating for some time in the lower range of the range and then occasionally spikes in price only to decline rapidly.

Since these price swings are fairly common in volatile markets but don’t suggest sustained momentum in either direction, this looks like a mediocre play to me.

As PI hits and approaches technical key levels, traders are keeping an eye on it. The downward pressure increases if the price stays below $0.70, especially with the lock event looming.

In case the price breaks above $0.70 with valid volume, it gives the potential signal for the new uptrend. If this were to happen, attack targets would be at $0.75, $0.80 and the most critical $1.00.

The volume profile as seen from the volume delta, also shows that traders have a lot of interest at the current price levels, but it is not clear whether the demand at current prices can back up a bullish breakout.

Latest price action, coupled with a lack of support, suggests that the path of least resistance is running downward as of now, unless it can be absorbed by the market, the unlock event is likely to bring sustained selling pressure.

Despite the bearish tone the upcoming token unlock will bring, there’s still a very strong bullish undercurrent flowing in and around PI.

Those invested in the market and expecting a breakout have already been priced in, but many players are expecting a rally.

This indicates that the bulls are still in the control of the situation. Also, that PI has been residing in the accumulation zone for this long without a major breakdown reaffirms that.