Pi Network, a controversial yet extremely popular digital asset, appears to be forming a classic bullish 'double bottom' pattern on the weekly chart, a technical setup that is currently keeping traders highly alert to the potential for short selling.
With the current price hovering around $0.64, according to CoinMarketCap data, traders are eyeing the possibility of a short selling situation, especially as social and technical signals align.
Bullish Design: 'Double Bottom' on the Weekly Chart
The weekly chart of PI/USDT shows a clear double bottom pattern anchored by support around $0.5850 and a neckline near $1.6708. This pattern is widely considered a reversal indicator, especially when accompanied by decreasing volume and volatility, both of which are present in the current structure.
A confirmed breakout above the psychological resistance level of $1.00 could trigger a run towards the neckline at $1.6708, a price increase of 160% from the current level. Additionally, Fibonacci extension levels suggest an ambitious target area around $2.40 (1.618) and possibly $3.50 (2.618) if the growth momentum continues strongly.
However, if it cannot hold above the recent local low of $0.5497, the bullish trend will lose validity and could potentially open up the possibility of the price testing the all-time low of around $0.40.
Daily Indicators Show Momentum is Forming
The daily chart adds depth to this bullish argument but also emphasizes the need for caution. The relative strength index (RSI) is currently at 42, indicating neutral momentum, neither overbought nor oversold. This suggests that PI is consolidating and may be preparing for the next directional move.
MACD is showing early signs of a bullish crossover. The histogram is flattening, and the MACD line is approaching the signal line from below. If this crossover completes in the coming days, it will support the bullish breakout narrative.
Fibonacci retracement levels, measured from the swing high to swing low, provide potential resistance points. The key retracement levels include:
0.382 (1.0288 dollars)
0.5 (1.1603 dollars)
0.618 (1.2917 dollars)
0.786 (1.4789 dollars)
These levels can serve as profit-taking zones or resistance levels in an uptrend, with the $1.00 level linked to the 0.382 level.
What Could Cause a Short Selling Situation for Pi Coin?
There is much speculation about a potential exchange listing, which could act as a catalyst for a short selling wave. Historical examples include ORCA surging 200% after listing on Upbit, while Axelar, Ravencoin, and Pocket Network also saw spikes following similar events. If PI gets listed on a major exchange like Binance, Coinbase, or Upbit, it could mimic these explosive moves.
Further fueling this narrative is the increase in social dominance, currently at 0.276%, according to Santiment, the highest since May 21. Social sentiment often precedes price action, especially for highly speculative assets.
Additionally, the upcoming Pi Day 2 event on June 28 is also in focus, marking the end of the .pi domain auction and the Open Network PiFest event. This event could provide the essential fundamental catalyst needed to push PI above resistance and confirm a bullish double bottom pattern.