Pi Network is struggling to keep up pace despite the ongoing market selloff as key indicators hint at a bullish breakout in the coming weeks.
By Godfrey Benjamin
Editor Yana Khlebnikova
Updated
4 mins read
Pi Network’s native cryptocurrency, PI, is inching towards a deeper bearish capitulation, and analysts are looking forward to a possible price rebound. Currently, the coin is trading at $0.5366, down 4.46% within the last 24 hours. The current price marks a notable decline for a digital currency that once traded near $3.
PI has lost up to 15% within the last seven days, signaling massive market volatility. This sentiment gradually diminishes as the coin is just 37% above its all-time low. However, technical indicators suggest that PI is extremely oversold, bringing a twist to the entire outlook.
Based on historic data, an oversold position usually precedes a rebound. In the case of PI, this setup does not show that there will be a meaningful recovery anytime soon. The Money Flow Index (MFI), a volume-weighted buying and selling pressure metric, is the first warning sign of a PI oversold position.
This indicator is usually above 80, indicating overbought conditions. On the other hand, a drop below 20 points signals an oversold asset. As it stands, the index has plummeted near the oversold region, suggesting strong sell-side dominance. The second warning sign is the Relative Strength Index (RSI).
Pi coin price graph | Source: TradingView
This indicator measures momentum, and at this moment, it is also close to the oversold point (below 30). On this basis, there are projections that the Pi Network price will remain below the $0.85 overhead resistance. PI has remained locked in a descending triangle, a bearish continuation pattern, for several weeks.
At the time of writing, the coin still clings to horizontal support at $0.53, according to CoinMarketCap. This is a critical level for bulls to defend.
Amidst this discouraging outlook, PI still has the potential to recover and hit a new high.
Two catalysts that could pioneer this bull movement for the coin are the Bitcoin (BTC) correlation and the Pi Network ecosystem sentiment. For the last few days, the BTC price has struggled to exceed $107,000.
Currently, the flagship cryptocurrency is trading at $104,288.20, probably influenced by the anticipation of the FOMC meeting decision.
This price level corresponds with a 1.21% drop over the last 24 hours. Ordinarily, when BTC price spikes, altcoins respond at a proportional level. Hence, if Bitcoin can register a price rebound soon, the PI price could reach a new high.
Regarding ecosystem sentiment, the level of positive interaction within the coin’s ecosystem regarding growth and token unlocks remains pivotal.
There is a likelihood that PI’s attention may go to Snorter Bot technology. This new project recently presented a good distraction with a presale that has drawn millions of dollars in capital.
The Solana meme crypto trading project was designed in the likeness of the adventurous aardvark. Moreover, it blends meme coin fun with real crypto trading prowess.
It is powered through Telegram and touted as the best crypto trading bot, considering its capacity to help users identify the rarest market opportunities.
By digging through market data, Snorter Bot provides real-time insights and convenient trading features on Telegram. The future holds prospects for multi-chain push; therefore, early adopters of this project may unlock one of the best crypto projects to overhaul on-chain trading.
Interested persons in the SNORT Presale still have almost three days before the offering ends. Payments for the presale can be completed via card or crypto, particularly Solana (SOL).
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
