Pi Network (PI) Price Falls 18% in April — Bullish Divergence Signals Rebound Ahead

Key Takeaways

• The price of PI dropped 18% in April, falling from $0.73 to $0.58 after repeated failures to break resistance.
• A recent crossover on the MACD indicator shows bullish momentum returning, suggesting a potential trend reversal.
• With an ADX reading of 8.59, the current downtrend lacks strength, allowing bulls to take control.

Since PI, the native coin of the Pi Network, peaked near $3 in February, its price action has been largely bearish, aside from a few short-lived rebounds. As April draws to a close, PI has recorded an 18% monthly decline.

This drop saw the coin fall from $0.73 to $0.58 after repeatedly failing to break through a key resistance level.

However, with May fast approaching, there are signs that the PI coin price could be gearing up for a potential recovery. Here’s why.

PI Performance Likely to Change

Between March 14 and early April, PI’s price traded within a descending channel, resulting in a steep drop from $1.69 to $0.57. In the latter part of April, the coin entered a consolidation phase.

Amid this consolidation, PI’s price fluctuated between $0.55 and $0.73. Despite several attempts, this sideways movement failed to produce a breakout, with bulls largely inactive.

However, with a new month approaching, things seem to be changing. One reason for this sentiment is the Moving Average Convergence Divergence (MACD).

The MACD measures momentum using the difference between two Exponential Moving Averages (EMAs). When the shorter EMA crosses above the longer EMA, it is a bullish crossover.

If it is the other way around, it signifies a bearish outlook. On the daily chart, the MACD has turned positive amid the PI coin price correction and consolidation.

At the same time, the 12 EMA (blue) has crossed over the 26 EMA (orange), indicating a bullish crossover that favors PI’s price.

This position also indicates a bullish divergence when compared with the price. If sustained, PI’s price could erase some of its losses in April within the first few days of May.

PI Price Analysis: Recovery Soon

Another look at the PI/USD daily chart shows that other indicators, including the Average Directional Index (ADX) and the Money Flow Index (MFI), seem to support the recovery.

The ADX, represented in red, measures the strength of a trend, regardless of its direction. A reading above 25 signals a strong directional movement, whether bullish or bearish.

On the other hand, an ADX reading below 25 suggests weak momentum and a lack of clear trend direction. As of this writing, the ADX rating is 8.59, indicating that the PI coin price downtrend has weakened.

Hence, any move by bulls to take control could send the market value soaring. In addition, the MFI appears to be flirting with the neutral line, indicating that some market participants may be buying the dip.

Should this trend continue, PI’s price might experience a double-digit rally toward $0.96. If buying pressure increases, the market value could rise to $1.39.

On the flip side, if the bulls fail to keep up the pressure, this prediction might not pass. In that scenario, PI’s coin value could slide to $0.41.