PI Network (PI) Price Surges: Can the Rally Continue?
PI Network's PI Token Breaks Key Resistance; What's Next?
PI Network’s native token, PI, experienced a significant breakout on Friday, surpassing a resistance level that had constrained its upward movement since mid-August. This surge coincides with renewed positive sentiment across the broader cryptocurrency market. With technical indicators suggesting increased buying pressure, PI may be poised for further gains.
Market Momentum Shifts as PI Clears $0.35 Barrier
Friday's trading session saw a sharp increase in demand for PI, culminating in a close above the upper boundary of a horizontal channel that had defined its price action since August 19. The $0.3587 level, formerly a ceiling, has now become a support floor, indicating a notable shift in market sentiment.
Technical Indicators Point to Continued Buying Pressure
Technical indicators reinforce the notion of increased demand for PI. The Chaikin Money Flow (CMF) currently resides above the zero line and displays an upward trajectory, signaling buy-side dominance. At the time of writing, the CMF sits at 0.04.
The CMF assesses the intensity of buying and selling by monitoring capital flow into and out of an asset over a specific timeframe. A CMF value above zero implies that capital is flowing into the token, whereas values below zero suggest outflows.
In PI's current scenario, a CMF of 0.04 amid a price rally signifies active accumulation by investors, rather than profit-taking. This dynamic bolsters the breakout's validity and strengthens the argument for continued upside.
20-Day EMA Provides Dynamic Support
Furthermore, PI’s recent rally has propelled its price above its 20-day Exponential Moving Average (EMA), which now provides dynamic support at $0.3545.
The 20-day EMA represents an asset’s average price over the preceding 20 trading days, assigning greater importance to more recent prices. Trading above the 20-day EMA typically reflects short-term bullish momentum and indicates sufficient buying activity to maintain prices above their average trend.
For PI, holding above this level implies that bulls are in control, and the EMA may serve as a dynamic support level during potential pullbacks. This could provide a basis for the token to sustain its upward trend.
Potential Targets: $0.39 and Beyond
Should demand persist, PI could test its next major resistance at $0.3903. A successful breach of this barrier could pave the way for a rally toward $0.4661.
Conversely, a failed retest of the breakout level could lead PI to revert to its previous sideways pattern. In a more bearish scenario, sell-offs could intensify, potentially breaking below the 20-day EMA support and driving the price down toward $0.3391.