Pi Network’s price shot up more than 50% to $0.20 earlier last week before parting with some of its gains and settling lower. Can it reclaim the key psychological figure now that it has confirmed a breakout from a multi-month trendline resistance?
Summary
- Pi Network price briefly rallied to a four-week high of $0.20 last week.
- Pi price action has confirmed a breakout from a multi-week descending trendline support on the daily chart.
According to data from crypto.news, Pi Network (PI) price rose nearly 54% to a four-week high of $0.20 on February 15 before profit taking stirred it back to $0.17 at the time of writing, though it still retains 20% gains over a seven-day period.
The PI network rally came amid investor hype surrounding the project’s upcoming key upgrades for the following months, aimed at building the ecosystem towards a more decentralized network. Notably, the upgrades for its mainnet node operators are part of its transition from version 19 to 22 of the Stellar network to accelerate its vision of decentralization while seeking to optimize performance, better security, and scalability to support long-term network growth for the project.
Another catalyst fueling this uptick is the hype surrounding the first anniversary of its mainnet launch on Feb. 20. Investors often tend to celebrate such milestones by buying more tokens, which can often drive speculative rallies.
Against this backdrop, derivatives data show that the Pi Network token’s funding rate has shifted from negative to positive at press time. This reversal suggests that traders are rotating from bearish to bullish positioning, which typically tends to uplift market sentiment surrounding the associated token.
Additionally, there is a lot of community chatter that the token could be listed on crypto exchange Kraken later this year. Getting listed on a major exchange like Kraken, which has a customer base of millions, could provide a significant boost to its price and overall liquidity.
On the daily chart, Pi Network price has confirmed a breakout of a descending trendline that had been acting as dynamic resistance since late November last year. Breaking above this long-standing pattern indicates that bulls are reclaiming market dominance and appear positioned to drive prices higher in the short term.
Evidence of a burgeoning uptrend is visible across several oscillators, with the MACD lines turning upward to indicate a positive crossover in momentum. This is typically interpreted as a sign that the period of distribution is ending and accumulation has begun.
Validating this transition, the Aroon Up at 92.86% vastly outpaces the 28.5% Down reading, confirming that the bulls have successfully seized control of the price discovery process.
Hence, Pi Network is well-positioned to see a potential rebound to its Feb. 15 high of $0.20. If bullish momentum persists, the rally could extend to its Nov. 28 high of $0.28, which lies 64% above the current price level.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
