Key Takeaways
- Pi Network’s (PI) price increased by 130% last week.
- PI Network trades inside a critical resistance at $1.40.
- Can the PI price break out and move toward $2?
The Pi Network (PI) price pumped after listing but fell by 85%, culminating with a new all-time low on April 5. The price regained its footing afterward and flirted with a breakout in May, spurred by Binance listing rumours.
As predicted, PI broke out last week and increased by 130%, reaching a critical resistance at $1.40. Since this area is crucial for future trends, this article will examine the price movement to see if PI can break out and identify the next target area.
PI Price Reaches Resistance
The daily time frame chart shows that the PI price has increased since its all-time low of $0.40 on April 5.
During PI’s price increase, the coin created its first higher low on May 8 and broke out from the $0.75 resistance the next day, accelerating its growth.
Today, Pi Network reached a high of $1.30, very close to the critical resistance at $1.40.
The $1.40 area is a horizontal and Fibonacci resistance, a breakout above which could take the PI price to a new all-time high.
Technical indicators do not show any evident weakness yet. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are increasing.
While the indicators are overbought, there is no bearish divergence to warn of an imminent local top.
However, the $1.40 area may trigger a short-term decline. Let’s consider a lower time frame and determine whether that is likely.
What’s Next for PI?
The six-hour time frame analysis shows that Pi Network’s price broke from a symmetrical triangle, validating it as support.
The triangle breakout preceded the move above the $0.75 resistance area, acting as the catalyst for the rapid increase.
While the rally is overbought, technical indicators do not show any weakness yet, similar to the daily time frame.
Moreover, the wave count (green) shows an extension, as evidenced by the sub-waves (black).
According to the count, the price is in an extended wave three, which will take PI at least to the 0.618 Fibonacci retracement resistance of $2.
While a short-term retracement as part of sub-wave four is possible, it will likely be shallow and followed by new highs.
PI to $2
The PI Network price regained footing after falling to an all-time low in April.
The price broke out from short- and long-term resistances, confirming its trend reversal.
PI Network’s analysis suggests the price will reach $2 but allows for the possibility of a short-term retracement.
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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