TLDR
- PI Network token broke above its horizontal channel resistance with a 16% intraday gain
- Token price climbed 2% with nearly 150% surge in trading volume to $270 million
- Price moved above the 20-day EMA ($0.4038), confirming short-term bullish momentum
- If buying continues, PI could target resistance at $0.4451, with potential to reach $0.5281
- Recent rally faced rejection at $0.46, causing a 4% pullback to around $0.413
PI Network’s token has shown promising price action over the past few days, breaking above a key resistance level and generating substantial trading volume. The digital asset closed above the upper boundary of its horizontal channel on Saturday, signaling what could be the start of a bullish breakout after a period of sideways movement.
Over the past 24 hours, PI has climbed 2% amid improving market sentiment. This follows an impressive 16% gain during the previous trading session, suggesting renewed interest in the token.
The breakout occurred after PI had been trapped in a horizontal channel between August 2 and August 8. This price pattern had prevented any upward movement until the recent surge pushed prices above the upper resistance line.
What makes this breakout particularly noteworthy is the accompanying spike in trading volume. In the last 24 hours, PI’s trading volume jumped nearly 150% to reach $270 million at press time.
This combination of rising price and increased volume is often seen as confirmation of a trend’s strength. It suggests more market participants are actively buying the token, which supports the price movement and reduces the likelihood of a false breakout.
The token’s price has also moved above its 20-day exponential moving average (EMA), which currently sits at $0.4038. This technical indicator now forms a dynamic support level beneath the current price.
When a cryptocurrency trades above its 20-day EMA, it typically indicates growing short-term bullish momentum and increased buying interest. For PI, this signals that the token may be entering an upward trend with potential to gain further strength.
Current Price Action
The most recent data shows PI trading near $0.413, representing a 4% decline after facing rejection at the $0.46 resistance zone. This area coincides with a 4-hour supply block and the upper Bollinger Band, creating strong overhead pressure.
Despite this pullback, the token remains well above its recent low of $0.326, from which buyers staged an aggressive breakout through short-term resistance levels.
On the daily chart, PI remains in a broader downtrend, with descending trendline resistance capping upside since May. The recent rally broke above short-term dynamic levels but stalled at the confluence of the $0.46 supply zone and the daily EMA cluster.
On the 4-hour timeframe, the rally pushed price above both the 20 EMA ($0.391) and 50 EMA ($0.384), but sellers defended the 200 EMA at $0.4287. The rejection has sent PI back toward the mid-Bollinger Band ($0.4402), which now acts as immediate resistance.
Price Targets and Support Levels
If buying momentum continues, PI could extend its rally and attempt to break above the key resistance level at $0.4451. A successful breakout above this barrier may propel the price toward the next target at $0.5281.
However, market participants should be aware that if profit-taking begins, PI’s price could retrace to support near $0.3773.
The On-Balance Volume (OBV) indicator remains near multi-month lows, suggesting that despite the price spike, broader accumulation remains relatively weak.
For the near term, the $0.46 resistance zone appears to be the key level to watch. A break above this area could signal continuation of the bullish trend, while failure to overcome it might result in further consolidation or retracement.
PI’s recent price movement comes as part of broader market dynamics, with the token showing signs of life after a period of lackluster performance. The current technical setup suggests a potential shift in momentum, though traders should remain cautious of resistance overhead.
At press time, PI trades at $0.413, with immediate support at the 20 EMA ($0.391) and resistance at the mid-Bollinger Band ($0.4402).
The post Pi Network (PI) Price: Technical Breakout Signals Potential Bullish Trend appeared first on Blockonomi.
Source: https://blockonomi.com/pi-network-pi-price-technical-breakout-signals-potential-bullish-trend/