Despite the downward behavior of PI in recent weeks, technical indicators show contradictory signals. While the increase in inflows to exchanges and the selling bias in derivatives keep the alert, a hidden bullish divergence in the RSI points to a possible change in direction.
Recent data indicates significant growth in PI inflows to centralized exchanges (CEXs). The net deposit balance exceeded withdrawals, suggesting that investors are preparing to make sales, which intensifies the bearish pressure in the short term. The information comes from PiScan.
Inflows to CEXs may impact the price of PI: PiScan
Funding rates reinforce negative sentiment
The funding rates of PI's perpetual contracts remain at negative levels, according to data from Coinglass. This shows that traders with long positions are being compensated by those in short positions, revealing a strong bearish consensus in the derivatives market.
PI funding rate with a selling bias: Coinglass
The funding rate measures the cost of holding long or short positions in perpetual futures contracts. A negative reading indicates that sellers dominate the dynamics and pay to maintain their positions.
Elder Ray Index shows weakening selling momentum
The Elder Ray Index points to an unstable balance between buyers and sellers. Bear Power still shows consecutive negative bars, but without new lows. This may indicate stabilization of selling pressure, although buyers remain inactive.
Bull Bear Power may impact the price of PI: TradingView
The indicator measures the relative strength of buyers and sellers compared to an exponential moving average, allowing the detection of trend transition moments.
What is behind the possible reversal of the Pi Network?
The main signal of a possible trend change comes from the Relative Strength Index (RSI). While the price of PI continued to record lower lows, the RSI traced higher lows. This hidden bullish divergence is considered a technical signal of weakening selling pressure.
Price divergence of PI and RSI: TradingView
If the reversal is confirmed, the next resistance levels are at $0.4797 and $0.5152. Overcoming these levels may open up space for a move towards $0.60. Additionally, projections from the Fibonacci indicator suggest additional resistances at $0.5037, $0.5347, and $0.5657.
Key price resistance levels for PI: TradingView
Fibonacci is used to map possible support and resistance zones based on proportional retracements, drawn between relevant swing points.
On the other hand, if PI loses the current support, a new downward movement may be triggered, nullifying the divergence reading and further pressuring the price. The market remains divided between technical exhaustion signals and fundamentals that reinforce caution.
The article Pi Network Analysis: currency faces selling pressure with possible reversal was first seen on BeInCrypto Brazil.