Pi Network (PI) has displayed strong short-term performance, gaining 16.1% over the past week and 5% in the last 24 hours. This rally contrasts with Bitcoin’s recent decline. However, technical analysis suggests the longer-term trend remains bearish, with the current move potentially being a retracement before further downside.
The cryptocurrency Pi Network showed notable gains recently. According to CoinMarketCap data, its price increased by 16.1% over the past week and rallied 5% over the past 24 hours. This performance was observed against a backdrop where Bitcoin saw a 1.4% decline over the previous day.
The price has returned to the psychological supply zone near $0.20. Gains over the past three weeks were described as a heartening sight to speculators, but could also represent a trap. The long-term trend for the asset remains bearish, according to analysis.
The current rally is likely part of a retracement before the bearish move can continue. In lower timeframes, a triangle pattern recently led to a strong breakout. This breakout has reached the 78.6% Fibonacci retracement level at approximately $0.20.
On the daily chart, the On-Balance Volume (OBV) has made higher highs during the rally. The Awesome Oscillator has also moved back above the zero line. Together, these indicators signal buying pressure and positive momentum in the shorter term.
However, the Chaikin Money Flow (CMF) has remained below -0.05 for most of the retracement. This presents a contradictory sign of weakness. It aligns with the assessment that bulls may be too weak to reverse the longer-term downtrend.
On the four-hour chart, the trend is currently bullish. This is exemplified by the break of a lower high at $0.1788. A local resistance level at $0.2055 opposes further bullish expansion.
Technical indicators on this shorter timeframe are all bullish. Yet, the analysis stresses that higher timeframe trends must be respected. Traders can wait for a session close below $0.1857 to confirm a bearish bias.
A rally beyond $0.216 is needed to shift the daily structure bullishly. The analysis concludes that the bullish breakout from the triangle pattern should not create a false sense of security for buyers. The longer-term swing structure remained bearish.
The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
