Key Takeaways
Why is PI rallying?
Release of MiCA compliance whitepaper has boosted short-term bullish momentum, but not enough to overcome the downtrend already present.
What are the next pivot points for PI?
On the 1-day timeframe, the $0.291-level is a key resistance that must be flipped to support to shift the structure bullishly.
Pi Network [PI] has seen an 8.78% rally since Monday, 17 November. This rally was helped by the recent news development related to MiCA, or the European Union’s Markets in Crypto-Assets regulations.
The release of Pi Network’s MiCA compliance whitepaper means the protocol is one step closer to operating transparently within the EU’s regulatory network. The paper highlighted the Pi Network’s low energy footprint and the non-custodial Pi wallet, which gives users full access to their assets.
An expansion into European markets will enable PI to trade on exchanges such as OKX Europe, thereby increasing liquidity and expanding the project’s reach.
Technical outlook for Pi Network remains weak
Source: PI/USDT on TradingView
On the 1-day chart, the trend was still bearish at press time. The $0.258-$0.282 zone has been a resistance since the final week of September. A brief foray beyond this resistance towards the end of October was met with rejection.
Though the RSI was above 50 to show bullish momentum, the trading volume has not been significantly high recently. This was evident by the lack of uptrend on the OBV. It indicated that, overall, sellers have been in control.
This could be a bounce for sellers to utilize.
Source: PI/USDT on TradingView
The structure, momentum, and buying pressure were more bullish on the 4-hour chart. However, traders should remember that higher timeframes carry more importance, and are the ones that dictate longer-term trends.
The current H4 uptrend could extend towards the $0.27 resistance overhead, but even this is a doubt. The weakness of Bitcoin [BTC] has not slowed down, affecting altcoin market sentiment negatively.
The $0.22-$0.228 region is a notable short-term support too.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion