Pi Network’s native token PI has struggled to gain upward momentum with its price action confined to a narrow range over the past few days.
However, market signals suggest that this deadlock may soon resolve in favor of the bulls as buying pressure gains momentum.
Consolidation Nears an End? Pi Traders Prepare for Next Big Move
Readings from the PI/USD one-day chart show that the altcoin has been confined to an unusually narrow range between $0.629 and $0.656 since May 31.
This tight consolidation, representing a price movement of less than 5%, signals low volatility and market indecision. It is common during periods of waning buying interest or when market participants are awaiting a catalyst.
However, technical indicators signal a possible bullish breakout above the $0.65 resistance as PI begins to record a gradual uptick in new demand. Its positive Balance of Power (BoP) confirms this. As of this writing, this indicator stands at 0.29.
The BoP measures the strength of buying versus selling pressure within a given period. When it returns a positive value, buyers dominate the market. This setup confirms the growing accumulation in the PI market and hints at potential price increases in the near-to-mid term.
Additionally, the shrinking size of the red bars on Pi’s Elder-Ray Index indicates that bearish pressure is steadily weakening in the spot markets. The indicator measures the strength of bulls and bears in the market by analyzing the difference between price and exponential moving averages.
When the size of its red bars (bear power) shrinks, it indicates weakening selling pressure, suggesting that bears are losing control and a bullish shift may be underway.
These trends signal the early stages of a potential PI bullish breakout.
PI Network Nears Make-or-Break Moment
PI exchanges hands at $0.651, trading below the $0.656 price ceiling. If buying pressure strengthens and new demand flocks the market, PI could break above this resistance and climb toward $0.725.
Should this price level solidify as a support floor, it could propel PI toward $0.796, a high it last reached on May 26.
However, if the bears strengthen their hold on the market, they could cause a breakdown of PI’s tight range, triggering a price fall to $0.629.
Disclaimer
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