Following a period of decline, PI has rebounded and initiated an uptrend as buying activity gains momentum.
The renewed buying pressure suggests that PI bulls are back in control, now setting their sights on reclaiming its all-time high (ATH).
PI Regains Strength as Key Indicators Flash Bullish
After it reached an ATH of $3 on February 27, PI saw a spike in profit-taking, which caused its price to plummet to a low of $1.51 by March 2. However, PI’s price has rebounded since then, indicating a shift in market sentiment as bulls attempt to regain dominance from the bears.
Key technical indicators, including the Balance of Power (BoP), highlight the growing strength of buyers in the market. At press time, this indicator is in an upward trend and at its ATH of 0.92.
An asset’s BoP measures the strength of its buyers and sellers by analyzing its price movements within a given period. When its value is positive, it indicates that buyers are in control, driving prices higher.
This trend suggests that buying momentum is building. It reinforces PI’s current uptrend and increases the likelihood of the coin reclaiming its $3 ATH if demand continues to rise.
Furthermore, PI’s Chaikin Money Flow (CMF) confirms the uptick in the coin’s demand. This indicator, which measures money flows into and out of an asset, rests above the zero line at 0.08.
A positive CMF reading like this indicates strong buying pressure, showing PI is experiencing sustained capital inflows. This suggests that demand for the altcoin outweighs supply, hinting at more price gains.
Pi Network (PI) Faces Critical Resistance
On the four-hour chart, PI currently holds above support at $1.97. If demand strengthens, the altcoin could break above the resistance at $2.12 and reclaim its ATH of $3.
However, the decline in PI’s demand to absorb the climbing supply may put downward pressure on its price. So far this month, over 188 million PI have been distributed to over 1 million Pioneers.
If demand drops, PI could lose its recent gains and plummet below $1.62 to trade at $1.34.
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Disclaimer
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