Pi Network (PI) Price Recovers After Flash Crash — Here’s What Comes Next

Key Takeaways

• Pi Network’s (PI) price increased by 130% last week.
• PI Network trades below a critical resistance at $1.40.
• Can the PI price break out and move toward $2?

The Pi Network (PI) price pumped after listing but fell by 85%, culminating with a new all-time low on April 5. The price regained its footing afterward and flirted with a breakout in May, spurred by Binance listing rumours.

As predicted, PI broke out last week and increased by 130%, reaching a critical resistance at $1.40. While PI failed to break out and fell, it has regained its footing and could make a breakout attempt soon.

After this hectic movement, the main question is: Will PI break out, or was that the end of the rally? Let’s find out.

PI Price Reaches Resistance

The daily time frame chart shows that the PI price has increased since its all-time low of $0.40 on April 5.

During PI’s price increase, the coin created its first higher low on May 8 and broke out from the $0.75 resistance the next day, accelerating its growth.

On May 12,  Pi Network reached a high of $1.67, above the main resistance area at $1.40.

The $1.40 area is a horizontal and Fibonacci resistance, a breakout above which could take the PI price to a new all-time high.

However, the PI price failed to break out, creating a long upper wick (red icon) and opening below the resistance area today.

Technical indicators do not show any evident weakness yet. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing.

While the indicators are overbought, there is no bearish divergence to warn of an imminent local top.

Nevertheless, the $1.40 area triggered a short-term decline. Let’s consider a lower time frame and determine where the price can find support.

What’s Next for PI?

The six-hour time frame analysis shows that Pi Network’s price broke from a symmetrical triangle, validating it as support.

The triangle breakout preceded the move above the $0.75 resistance area, acting as the catalyst for the rapid increase.

While the rally is overbought, technical indicators do not show any weakness yet, similar to the daily time frame.

Moreover, the wave count (green) shows an extension, as evidenced by the sub-waves (black).

According to the count, the price is in an extended wave three, which will take PI at least to the 0.618 Fibonacci retracement resistance of $2.

If the count is accurate, the ongoing retracement is part of sub-wave four, which may create a symmetrical triangle or a lower low.

In both cases, another PI upward movement and breakout above $1.40 are likely.

PI to $2

The PI Network price regained footing after falling to an all-time low in April.

The price broke out from short- and long-term resistances, confirming its trend reversal.

PI Network’s analysis suggests the price will reach $2 despite its short-term rejection at $1.40.