In mid-February, a Pi Network (PI) rally of 58.1% over four days was identified as potential buyer exhaustion rather than a bullish reversal. The token was rejected at the $0.20 supply zone and is now trading near $0.171, but analysis suggests a potential bullish breakout could be possible if Bitcoin surpasses $70,000.
The Pi Network token experienced a significant rally in mid-February, gaining 58.1% in four days. However, it was unable to overcome the $0.20 supply zone and has since retreated.
At the time of writing, PI was trading at $0.171. The rejection from overhead supply has materialized, but the price did not fall below the $0.13 local lows.
This price action did not signal strong bearish intent, as the altcoin rebounded from around $0.16. Analysis of on-chain balance volume (OBV) indicated selling pressure was not high following the rally.
The 20-day and 50-day moving averages were nearing a bullish crossover. Over the past week, the 20-day moving average has acted as dynamic support for PI prices.
On a shorter time frame, PI was approaching the apex of a triangle pattern. The H4 local resistance at $0.1788 would likely be a firm test of bullish resolve.
The direction of the breakout from this chart pattern could determine the next impulse move. PI’s short-term direction hinged on the direction of the breakout from the triangle pattern.
A potential short squeeze in Bitcoin [BTC] could provide temporary relief for altcoins. In such a scenario, a move toward $0.20 and the $0.216 local high could materialize for PI.
The Pi Network price prediction is a move toward $0.20 and $0.216, provided Bitcoin can climb above $70k and maintain the momentum. This outlines a potential path for a long-term trend shift.
