Pi Network (PI) has increased by 86% in the last week, trading at $1.09, demonstrating significant recovery potential after a less favorable April.

This growth positions the altcoin for recouping losses from March, as it holds above the critical support level of $1.00. The recent rally has attracted investor attention, fueling optimism about future price dynamics.

Pi Network has growth potential

The Relative Strength Index (RSI) for Pi Network has risen above the 70.0 threshold, entering the overbought zone. This indicates that the bullish momentum is becoming saturated, which historically signals a possible reversal.

Overbought conditions often lead to corrections in the market, as an overheated market cools off and investors tend to take profits. However, it is important to note that some assets remain in the overbought zone for extended periods without falling. If PI encounters similar conditions, it may be protected from sharp price declines. Considering the broader momentum, the Chaikin Money Flow (CMF) indicator for Pi Network significantly exceeds the zero line, signaling strong inflows. Although CMF recently showed a decline, this is not expected to last, especially considering the strength of the market.

Although short-term fluctuations may occur, the overall market sentiment, supported by a positive CMF indicator, suggests that the bullish momentum of Pi Network remains intact. This could potentially sustain its upward movement, provided that the overall market conditions continue to favor crypto assets. The price of PI shows resilience.

The price of Pi Network currently stands at $1.09, which is 86% higher over the last seven days, with strong support at the $1.00 level. This psychological support point is crucial for the future performance of the altcoin.

Although the indicators show mixed signals, the probability of PI falling below $1.00 seems low. If it manages to hold above this level, Pi Network may continue its upward momentum towards a target of $1.34, aiming to reach $1.64. This is only possible if the current bullish momentum is maintained in the coming days. However, if Pi Network faces significant selling pressure from investors, the altcoin may lose its support at the $1.00 level. A drop below this critical level would push PI to $0.87 or $0.78, nullifying the bullish outlook and signaling a potential decline for the altcoin.#BinanceSquare #Write2Earn #crypto #TradeStories #TradeLessons