Pi Coin Price Reclaims Support After Breakdown — Decisive Week Ahead
What's Next for PI? | Credit: Hameem Sarwar
- The PI price reclaimed a long-term ascending support trend line.
- PI bounced at a long-term horizontal support area at $30.
- Will PI sustain its increase and move toward its next resistance?
Pi Network, a project launched in 2019 has not released its token in the open market yet. However, this has not stopped some exchanges from listing IOUs that allegedly represent the PI price.
Recently, PI reclaimed a long-term diagonal support after previously falling below it. Let’s look at the price movement and its implications for the future trend.
Pi Price Reclaims Support
The Pi Open Network has not yet launched, though an IOU token of PI is tradable on Huobi and Bitmart. The official Pi Network account has stated that it does not have any confirmed exchange listings.
Since May 2023, the PI price has increased alongside an ascending support trend line. Despite this increase, it failed to break out from the $55 horizontal area.
Rather, it created long upper wicks every time it reached it (black icons).
In September, the PI price broke down from the support trend line and reached the $30 horizontal support area. This triggered a bounce, and PI is reclaiming the ascending support trend line.
The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are at critical levels. The RSI is at 50, and the MACD is close to making a bullish cross.
So, whether PI reclaims the support trend line or gets rejected will determine the direction of the future trend.
A successful breakout will also cause the RSI and MACD to turn bullish, triggering an increase to $55.
On the other hand, a rejection could cause PI to eventually break down below $30, triggering a drop to $20.
There is also an important discrepancy between the IOU price and the reported PI supply.
With the reported maximum supply of 100 billion tokens, PI’s fully diluted market cap would be around $3.6 trillion at the current price.
This would make PI the largest cryptocurrency by market capitalization, outpacing Bitcoin, which has a $1.26 trillion market cap.
Decisive Week Ahead
The PI price action faces a decisive week, determining whether the price moves toward the $55 resistance or falls to the $30 support.
Whether PI reclaims the ascending support trend line or gets rejected will likely establish the trend’s direction.
