PI Network Price: $0.40 Resistance Holds, Bears Strengthen Grip

PI Price Faces Stiff Resistance at $0.40

PI Network's PI token experienced a 15% surge over the past week, fueled by renewed optimism in the broader cryptocurrency market. However, the token is now encountering significant selling pressure around the $0.40 level. This price point, formerly a support level, has transformed into a key resistance area.

Bears Defend $0.40 Level

Analysis of the PI/USD one-day chart reveals two unsuccessful attempts to breach the $0.40 barrier in the past week. Each brief push above this level was met with strong selling pressure, pushing the price back down before the daily close. This pattern indicates the strength of the resistance and the sellers' control.

While PI's price is up 2% today, mirroring general market growth, a 26% drop in trading volume signals caution. This decreasing volume creates a negative divergence with the token's price, hinting at a possible near-term pullback.

When price increases while volume decreases, it often suggests weakening buying strength. This divergence indicates that PI's rally may lack strong conviction and could reverse as demand wanes.

Furthermore, PI's Elder-Ray Index on the daily chart reflects a bearish outlook. Over the last two trading sessions, the index has been negative, currently at -0.0056. This signals that bears maintain firm control of PI spot markets.

The Elder-Ray Index measures buying and selling pressure by comparing price movements to a short-term moving average. A negative value indicates that selling pressure outweighs buying power, confirming bearish market control.

Possible Scenarios: $0.32 Retest or $0.46 Rally?

If PI fails to decisively close above $0.40 soon, it could trigger a retest of its all-time low of $0.32.

Conversely, a successful breakout above $0.40 could pave the way for a sustained recovery, potentially driving PI's price toward $0.46 in the coming sessions.