Key Takeaways
- PI’s price is trying to hold above key support levels amid a rounding bottom pattern on the daily chart.
- The MFI has risen to 67.47, indicating rising buying pressure, which may help PI break above its resistance.
- The 12-day EMA has crossed above the 26-day EMA, suggesting that PI’s price could surge to $0.96.
PI, the native token of the Pi Network, has suffered a significant 80% drop from its February 26 all-time high of $2.99. Despite this decline, recent price action indicates that PI is attempting to hold above key support levels.
This change could signal a bullish short-term outlook, with indicators pointing to a possible double-digit surge. In this analysis, CCN breaks down how PI might rebound and what price levels to watch for in the coming weeks.
PI Looks to Shatter Resistance
Since March 1, PI’s price has been trading downwards while hitting lower highs. But on Thursday, April 17, the cryptocurrency rallied above the resistance line of this downtrend.
This development was one of the reasons our last analysis focused on the strength that PI showed. Today, that sentiment has not changed as the daily chart reveals the formation of a rounding bottom pattern on the daily chart.
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A rounding bottom, also known as a saucer bottom, is a bullish reversal chart pattern that signals a trend change from bearish to bullish.
As seen below, PI formed the pattern after the price fell gradually before flattening out. Later, PI’s price seems to break above resistance while eyeing a sustained uptrend.
Following the pattern formation, the Money Flow Index (MFI) reading has risen to 67.47. This rise indicates rising buying pressure.
In addition, PI’s price is on the brink of retesting the 20-day Exponential Moving Average (EMA). If buying pressure continues to increase, the cryptocurrency might climb above the 20 EMA support and trade higher.
PI Price Analysis: Uptrend in Play
Another look at the daily PI/USD chart reveals that the Moving Average Convergence Divergence (MACD) has turned positive. The MACD is an oscillator that measures momentum by tracking the divergence of divergence or convergence between two Exponential Moving Averages (EMAs).
The trend is bullish when the shorter-period EMA rises above the longer one. On the other hand, if the longer EMA is above the shorter one, the trend is bearish.
The chart below shows that the 12 EMA (blue) has crossed above the 26 EMA (orange), indicating a bullish trend.
If this position remains the same, PI’s price could experience a 50% surge. If validated, this 50% surge could take the cryptocurrency’s value to $0.96, which is at the 0.786 Fibonacci level.
However, if the EMA turns into a bearish crossover, this prediction might be invalidated.
It could also happen if the MFI reading falls below the signal line, indicating selling pressure. If that is the case, PI’s price might drop to $0.40.
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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