The PI Network token has experienced a significant price rally, gaining over 80% since its most recent low following a breakout from a downtrend in February. Key support is now established at $0.20, with bulls aiming for the next resistance level at $0.28. However, technical indicators suggest the rally may be getting overextended as the daily RSI moved into overbought territory.
The price of PI Network (PI) has entered a sustained rally, pumping over 80% since its most recent bottom after breaking from a downtrend in February. This change in price action indicates that interest has returned to the asset.
Buy volume exploded with two major impulses, one during the mid-February breakout and another in early March. That second impulse saw the resistance at $0.20 turn into a key support level.
With support at $0.20 secured, bulls can aim to take PI to $0.28 next. This level has acted as key resistance in the past and may see sellers return.
The most important thing for buyers now is to consolidate recent gains and defend the key support. This defense is necessary should sellers appear to avoid a loss of positive momentum.
The recent spike above $0.20 took the daily RSI into the overbought area at 80 points. The momentum indicator has since cooled down, falling under 70.
As long as the RSI is making higher highs and higher lows, the initiative remains firmly in the hands of buyers. This indicator can stay overbought for quite some time until a correction materializes.
