The PI price reached the horizontal resistance at $50.
PI has increased since bouncing at the $30 support area.
Will PI finally break out, or will it fail to move above $50?
Pi Network is a project that was launched in 2019, but its token has not yet hit the open market. Despite this, some exchanges have listed IOUs that allegedly represent the PI price. One PI IOU increased nearly 80% in October, reaching a critical horizontal resistance area at $50.
Since the area has existed for over a year, a breakout above it can greatly accelerate the rate of increase. Let’s examine the price action and see how likely this is.
Pi Price Reclaims Support
Even though the Pi Open Network has not launched yet, its IOU can be traded on Huobi and Bitmart. However, it is worth mentioning that Pi Network has stated that these exchange listings are not official and are not supported by the project. The mainnet launch is expected near the end of 2024, but there is no official release date yet.
On Oct. 16, the Pi Network team requested more Know-Your-Customer (KYC) validators to handle the influx of KYC requests.
Since May 2021, the PI price has increased following an ascending support trend line. While doing so, it made several unsuccessful attempts at moving above the $50 resistance area, which is both horizontal and Fibonacci resistance.
Conversely, PI briefly broke down from the ascending support trend line in September (black circle). Nevertheless, it regained its footing afterward and reclaimed the trend line at the start of October, leading to another unsuccessful breakout attempt (black icon).
When combined with the ascending support trend line, the PI price movement creates an ascending triangle, considered a bullish pattern.
Technical indicators are turning bullish. This is especially visible in the Relative Strength Index (RSI), which broke out from its resistance trend line and moved above 50.
As a result, a breakout above resistance is the most likely outlook. An upward movement that travels the entire pattern’s length would take PI to the next target at $80.
Short-Term Breakout
The daily time frame supports a move above the $50 area. It shows a breakout from a short-term descending resistance trend line and its validation as support. The bounces created long lower wicks, seen as signs of buying pressure.
During this movement, the RSI increased above 50 and has returned to the line again, possibly validating it as support.
So, the daily time frame aligns with the weekly one and predicts a PI price breakout above 50.
Closing below the resistance trend line would invalidate this and could trigger a decline toward $50, breaking down from the long-term ascending support trend line.
Currently, this seems unlikely.
PI Breakout Ahead
After reclaiming an ascending support trend line, the PI price aims to break out from the $50 horizontal resistance area.
If successful, this could trigger an increase toward the next resistance level at $80.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
