Pi Network (PI) Seeks Relief From Brutal 78% Decline — Prolonged Freefall Likely Over

Key Takeaways

• PI is attempting to recover after a steep 78% drop from its all-time high.
• A falling wedge pattern on the PI/USD daily chart reinforces the thesis.
• If the support at $0.65 holds, the PI coin price could climb toward $0.77.

PI, the native cryptocurrency of the Pi Network project, is trying to escape the weight of its steepest correction. Since reaching an all-time high of $.298 on Feb. 26, the Pi Network price has dropped by 78%.

In May, PI attempted to retest the $1 level but faced rejection, leading to an 11% decline over the past seven days.

However, the current price action suggests that PI may be gearing up for a reversal, which could lift it from its current state of bearish exhaustion.

Pi Network Tests Key Resistance

The PI/USD daily chart reveals a falling wedge pattern forming after the recent decline, characterized by lower highs and lower lows.

As the wedge narrows, it typically signals a bullish reversal, provided that trading volume picks up. The price must break above the upper trendline to confirm the pattern.

Currently, the Pi Network price is testing this resistance line. A similar setup occurred when PI’s price broke above the upper trendline of a descending triangle, triggering a strong rally.

PI surged 115% during that period, climbing from $0.58 to $1.25. Thus, the cryptocurrency could surge past the resistance at $0.90 if buying pressure increases.

Momentum Changes

Furthermore, CCN examined the Moving Average Convergence Divergence (MACD) on the 2-hour chart. The MACD measures momentum using the difference between two key Exponential Moving Averages (EMAs).

When the MACD is positive, momentum is bullish. However, a negative MACDA rating indicates a bearish momentum.

As of this writing, the MACD reading is positive, and the 12 EMA (blue) has crossed above the 26 EMA (orange). The Pi Network price could overcome the hurdles and climb higher if sustained.

PI Price Prediction: Slow Recovery

A closer look at the 2-hour chart shows that Pi Network’s price is trading within an ascending channel. As illustrated below, PI has formed higher lows while maintaining a flat horizontal resistance near the channel’s upper boundary.

The exact timeframe reveals that the Chaikin Money Flow (CMF) has crossed above the zero line. The rise above the line signals renewed buying interest after PI’s recent capitulation.

If this bullish momentum continues, the PI coin value could break above the golden ratio at $0.70. If buyers maintain pressure, the price might increase to $0.77, near the 0.382 Fibonacci retracement.

However, if selling pressure intensifies, this bullish scenario could be invalidated, pushing PI down to support around $0.60.