Key Takeaways
- After falling from $1.83, PI’s price broke out of a descending channel and retested $0.74 before pulling back.
- The negative funding rate shows an over-concentration of shorts — a setup that could trigger a short squeeze.
- A bullish crossover on the MACD (12 EMA above the 26 EMA) suggests a possible PI rally.
The PI coin price has fallen 17% in the last 24 hours, extending its 30-day performance to a 55% drop. This decline followed the failure of the Pi Network’s native cryptocurrency to sustain an uptrend after its brief rise to $0.74.
Today, PI’s price is down to$0.61. If unchecked, another 52% drop could lead it to a new all-time low.
However, it does not seem PI bulls are ready to let that happen. In this analysis, CCN reveals how the cryptocurrency could refrain from trading lower after this notable correction.
PI Forms Bullish Structure
Between March 13 and April 4, the PI coin price plunged from $1.83 to $0.51. This decline caused the cryptocurrency’s technical structure to form a bearish descending channel.
Later, PI broke above the upper trendline of the falling channel and eventually retested $0.74. Unfortunately, the token did not take long to reverse some of these gains, as shown below.
You’ll Want To See This
In the image below, PI faces resistance at $0.74. However, it has yet to drop below support at $0.56.
Amid this price movement, the daily chart shows a hike in the Money Flow Index (MFI) rating, which indicates rising buying volume.
This could help the PI coin price evade another double-digit correction if sustained.
Short Squeeze Potential Builds
Despite the bullish indicators, Coinglass data reveals that the funding rate for PI remains negative. The funding rate represents the cost of maintaining open positions in the derivatives market.
A positive rate suggests that long (buyer) positions dominate, while a negative rate implies a higher concentration of shorts (sellers). With PI’s funding rate in negative territory, it signals prevailing bearish sentiment among traders.
However, when this sentiment becomes overly skewed to the downside, it can set the stage for a short squeeze, potentially fueling a price rebound. Therefore, if bearish pressure continues to mount, PI coin price could see a notable upward move.
PI Price Analysis: Ready for a Comeback
The daily PI/USD chart again shows that the Moving Average Convergence Divergence (MACD) reading is positive. The MACD measures momentum using the difference between two key Exponential Moving Averages (EMAs) — specifically the 12 EMA (blue) and 26 EMA (orange).
From the image below, the 12 EMA has crossed above the 26 EMA, indicating a bullish crossover. Should this position remain the same, the PI coin price might see a rally toward $0.96, positioned at the 0.786 Fibonacci ratio.
A highly bullish market condition could see PI’s price rise to $1.40 near the 0.618 golden pocket ratio.
On the contrary, if bullish momentum fades and selling pressure outpaces the buying volume, this prediction might not pass. In that case, PI could see a drop to $0.41.
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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