Pi Network (PI) Seeks Recovery as Bullish Pattern Follows 23% Decline

Key Takeaways

• PI has dropped 23% in the last seven days, failing to record a daily green candlestick since last Thursday.
• The coin has formed a falling wedge on the daily chart, a pattern that signals a potential reversal.
• PI’s technical setup suggests a possible rebound, as a move above $1.41 could trigger further upside
• Interested in buying or selling PI coin? Read our review of the best exchanges to buy and sell PI.

Since March 13, the Pi Network (PI) price has failed to register a daily green candlestick. This performance aligned with CCN’s analysis seven days ago that the cryptocurrency’s value could drop to $1.18.

The price of PI has dropped 23% in the last seven days. While the downturn has affected market confidence, technical indicators suggest PI could rebound.

However, a full recovery depends on the broader market condition and certain price levels. In this analysis, CCN examines how PI has formed a crucial bullish pattern and what factors must align for the coin to capitalize on its breakout potential.

PI’s Selling Pressure Weakens

PI’s price almost hit the $3 mark on Feb. 26 days after the coin became tradable. However, it faced rejection after a bullish engulfing candle attempted to push it past the threshold.

On several occasions after that, the PI attempted to move higher but faced resistance, pulling the price down. According to the daily chart, this decline led to PI’s price hitting lower and lower highs.

At the same time, these lower highs and lows have helped it form a falling wedge. A falling wedge pattern signals a potential bullish reversal, indicating that selling pressure is weakening while buyers gradually regain control.

As shown below, PI’s price seems to have found support near $1.15, with eyes on breaching the $1.41 resistance. Amid this price action, the Money Flow Index (MFI has dropped to 20.76, indicating that the coin is oversold.

Therefore, sellers are likely exhausted, and buyers might soon enter the picture. If this happens, PI’s price could begin erasing part of the 23% correction.

PI Price Analysis: Poised for a Rebound

Like the signs shown by the MFI, the Relative Strength Index (RSI) agrees that PI is nearly oversold. The RSI uses the speed and size of price changes to measure momentum.

An RSI reading of 31.27 suggests that PI is approaching oversold territory, which could mean sellers are exhausted. A potential reversal or price rebound could be closed.

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In addition, the Chaikin Money Flow (CMF) reading has crossed the zero signal line. The rise in the CMF reading indicates that buyers are capitalizing on sellers’ fatigue.

If this remains the same, PI’s price might climb to $1.53 at the 0.618 Fibonacci level in the short term. If buying pressure strengthens, this target could be higher, and PI could rise to $2.09.

Conversely, a breakdown below the $0.768 Fib level and lower trendline of the falling wedge might invalidate this thesis. If that happens, the PI coin price might slide to $0.62.