The Pi Network (PI) recorded a 4% increase in the last 24 hours, driven by a positive change in market sentiment. The movement generated speculation about a possible trend reversal and the beginning of an appreciation cycle for the altcoin.
The Moving Average Convergence Divergence (MACD) indicator of PI showed a bullish crossover, with the MACD line (blue) surpassing the signal line (orange) for the first time since July 1st.
PI MACD. Source: TradingView
This type of crossover is generally interpreted as a buy signal, indicating an increase in buying strength. Although both lines are still below zero, the pattern suggests a weakening of selling pressure.
The PI Coin can generate a growth in demand
In addition to the MACD, the Balance of Power (BoP) indicator points to a growth in demand. In the daily PI/USD chart, the BoP is at 0.61, indicating that buyers are outpacing sellers in the current market context.
PI BoP. Source: TradingView
The BoP assesses the strength relationship between buyers and sellers. When it is in positive territory, it signals buyer dominance, which can sustain the appreciation of the altcoin.
PI resistance test with potential for advancement
Currently, the PI is trading below the resistance of $0.477. If buying pressure continues, the asset may break this level and turn it into support, paving the way for a new target at $0.508.
Price Analysis of PI. Source: TradingView
To maintain this scenario, the Pi Network will need to register a consistent increase in demand that absorbs the circulating supply. Without this additional volume, the current momentum may lose strength, causing the memecoin to revert to the previous consolidation range or retreat to support at $0.445.
The article 'Pi Network Analysis: currency generates first signs of bullishness in July' was first seen on BeInCrypto Brazil.