Pi Network’s token, PI, surged over 40% in a week, reaching near $0.187 as it tested the $0.20 resistance level. Traders are observing a potential bullish reversal following a falling wedge breakout on the charts. The approach of the project’s mainnet anniversary and a reduction in token supply unlocks are cited as contributing factors.
The Pi Network token rose sharply, trading near $0.187 with a weekly gain exceeding 40% according to data from CoinMarketCap. This move came as traders prepared for the project’s first mainnet anniversary.
Reduced token unlocking pressure has resulted in a tighter circulating supply. This increased price sensitivity has placed key resistance levels in focus.
TradingView daily charts depict PI breaking through a long-term falling wedge that developed between late November and early February. A falling wedge often suggests bearish exhaustion.
Breaking above the wedge’s upper trendline with strong volume signals a potential bullish reversal. It also indicates a shift from distribution to accumulation.
The impulse move returned the PI price above the 20-day Exponential Moving Average. This average will now act as a dynamic support level.
After the breakout, PI established a bullish pennant formation with a flagpole and tight consolidation. Rising volumes on upward candles during consolidation confirm a potential continuation signal.
Momentum indicators also confirm this setup, with the RSI remaining above 50. The MACD recently completed a bullish crossover on the daily chart, indicating increased buying pressure.
PI is now trading above the 61.8% Fibonacci retracement zone of approximately $0.184. The immediate resistance zones lie at approximately $0.198 and $0.200.
A confirmed close above these zones would confirm the breakout from the pennant. It would open a path toward the next resistance near $0.212, coinciding with the monthly high.
The zone near $0.174 is a key area where a potential breakout failure could occur. A daily close below this level could weaken the bull trend and send the price back to prior consolidation.
A near-term catalyst exists with the first mainnet anniversary approaching. Unlock activity has been reduced compared to previous months, according to data from Pi Scan.
Exchange listing opportunities, such as on Kraken, are still under internal review. They could positively impact the token’s price but have not been confirmed yet.
