Pi Network (PI) has surged by 86% over the past week, trading at $1.09 and showing strong recovery potential after a less-than-favorable April.
This uptick is positioning the altcoin to regain losses from March, as it holds above the critical $1.00 support level. The recent rally has caught the attention of investors, fueling optimism about its future price action.
Pi Network Has Room For Growth
The Relative Strength Index (RSI) for Pi Network has surged above the 70.0 threshold, entering the overbought zone. This indicates that the bullish momentum is saturating, which historically signals a potential reversal.
Overbought conditions often lead to market corrections as the overheated market cools down and investors tend to book profits. However, it’s important to note that some assets remain in the overbought zone for extended periods without a drop. If PI faces similar conditions, it may be safe from a sharp drawdown in price.
Looking at the broader momentum, the Chaikin Money Flow (CMF) indicator for Pi Network is well above the zero line, signaling strong inflows. While the CMF has shown a dip recently, this is not expected to persist for long, especially given the market’s strength.
While short-term fluctuations may occur, the overall market sentiment, bolstered by the positive CMF reading, suggests that Pi Network’s bullish momentum is still intact. This can potentially sustain its upward movement, provided the broader market conditions continue to favor crypto assets.
PI Price Exhibits Strength
Pi Network’s price is currently at $1.09, up 86% over the past seven days, with strong support at the $1.00 level. This psychological support point is crucial for the altcoin’s future performance.
While the indicators present mixed signals, the likelihood of PI falling below $1.00 seems low. If it manages to hold above this level, Pi Network could continue its upward momentum toward the $1.34 target, aiming for $1.64. This is possible only if the current bullish momentum persists for the coming days.
However, if Pi Network faces significant selling pressure from investors, the altcoin could lose its $1.00 support. A drop below this critical level would push PI towards $0.87 or $0.78, invalidating the bullish outlook and signaling a potential downturn for the altcoin.
Disclaimer
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