Key Takeaways
PI Network’s anticipated mainnet launch did not deliver since the PI price fell sharply after launch.
The downward movement culminated with a low of $0.40 before PI finally regained its footing.
Since the bounce is ongoing, the main question is if PI can sustain it and move to new highs.
Let’s examine the charts and see what lies ahead.
PI Price Breaks Out
The PI price fell 85% after reaching an all-time high of $3 on Feb. 26, culminating in a low of $0.40.
A descending wedge contained most of the decline. The wedge is a bullish pattern.
On April 5, the PI price bounced and broke out from the wedge. The breakout could have been caused by Binance listing rumors for Pi Network.
Despite the breakout, PI trades below the $0.65 horizontal resistance area. The price needs to move above it to reach the next resistance at $1.30.
Technical indicators support the upward movement. The Moving Average Convergence/Divergence (MACD) generated a bullish divergence before the breakout.
The Relative Strength Index (RSI) trends upward and has nearly crossed 50.
Therefore, the six-hour time frame suggests the PI price will break above $0.65 and move to $1.30.
What’s Next for PI?
Despite the breakout from the wedge, the wave count suggests the PI trend is bearish.
The original increase after the listing was an A-B-C structure (green), while the ongoing decrease is a five-wave downward movement (red).
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The shape of the decrease means the long-term trend is bearish, and new lows are likely.
If the count is accurate, Pi Network’s price is currently in wave four of this five-wave decline.
The sub-wave count is black, showing the price has another short-term rally before decreasing.
Therefore, the PI price could reach a high near the $1.30 area or slightly below it before resuming its downward trend to new lows.
Corrective Rally
The PI price showed strength by breaking out from a descending wedge pattern.
However, the long-term trend is still bearish.
Once it completes its short-term bounce, the PI price will likely fall to new lows.
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.
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