Pi Network (PI) has been unable to rise above a descending trendline since April 12 as it continues to move lower in a new cycle after the token reached a high of $3 in February. However, recent price movements and technical indicators suggest that the situation may be changing.
As the attached chart shows, on-balance volume (OBV), a well-known technical indicator that is used as a leading indicator for the long term, has increased significantly over the past two days. This increase in OBV indicates that buying pressure is increasing, even though the price remains relatively stable for now. Such a divergence between price and OBV can be a sign of an upcoming bullish breakout.
Also, the red bars of the BBTrend indicator, which is typically used to measure buying and selling pressure, have been gradually decreasing, indicating that selling pressure is decreasing. This decrease in volatility suggests that the market is gearing up for a change in direction.
Currently trading at $0.591, the Pi token is still below the downtrend line, which is providing resistance around $0.605. However, if the bullish momentum continues and demand increases, it could break through this level and continue to rise to the next resistance level at $1.01.
But if the price fails to rebound and continues to move downward, it could return to the historical low of $0.40.
The technical indicators seem to be suggesting that the worst is over for Pi Network. With investors discreetly accumulating the token and selling pressure decreasing, it seems like the short-term trend might be reversing.
If this trend continues, the Pi token could continue its upward journey and provide excellent opportunities for traders who are looking for a return on their investment. It remains to be seen if the overall sentiment in the crypto market will align with these emerging bullish signals.
