Pi Network has been the subject of investor frustration due to its delayed mainnet launch and lack of Binance listing. Amidst all this, the token recently hit a new low before recovering sharply.
After a significant decline, the altcoin has surged by 36%, leaving investors to wonder if this marks the beginning of a reversal.
Pi Network Investors Are Optimistic
The Chaikin Money Flow (CMF) indicator is showing an uptick, signaling positive inflows into Pi Network at the time of writing. This shift suggests that investor confidence is returning, likely due to the altcoin hitting what seems to be its market bottom. With market conditions expected to improve, Pi Network appears to be positioned for a potential rally, with investors looking to capitalize on its current price.
Owing to the prolonged downtrend, these positive inflows indicate that market sentiment may be shifting. Investors who were previously hesitant may now be more willing to re-enter the market and seek profit.
Pi Network’s correlation with Bitcoin has also shown signs of improvement, with the current correlation at 0.24. Although still low, this improvement suggests that Pi Network may begin to follow Bitcoin’s price movements. If Bitcoin experiences a significant rally, Pi Network could follow suit, benefiting from the broader market’s bullish momentum.
This increasing correlation could be crucial for Pi Network, as it indicates a stronger alignment with the larger crypto market. If Bitcoin’s price begins to surge, Pi Network’s recovery could gain additional momentum.
PI Price Is Bouncing Back
Pi Network’s price fell to a new all-time low of $0.40 during an intra-day low, marking a significant dip for the token. However, it quickly recovered, posting a 36% gain and reaching an intra-day high of $0.71.
This price movement shows that the altcoin is capable of rapid reversals, but it remains to be seen if this momentum will continue.
Given the positive indicators, Pi Network may continue its upward trajectory, potentially reaching the $0.87 level and even $1.00. These price points would represent a substantial recovery from its recent lows and may help restore investor confidence in the altcoin’s long-term viability.
However, the key factor will be whether it can maintain its upward movement.
On the other hand, if bearish signals persist and Pi Network loses the support of $0.50, the altcoin may fall back to $0.40 or lower, invalidating the current bullish outlook. This scenario could bring further declines, extending the downtrend that investors have been watching closely.
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Disclaimer
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