In the past 24 hours, Pi [PI] has been in a downward trend, with the altcoin dropping by 2.85%. Prior to this decline, Pi had once dropped, falling 13% in just one month.
However, can the price chart show improvement?
Yes. According to AMBCrypto's analysis, the cryptocurrency market may experience a turning point. In fact, at the time of writing, new technical indicators seem to provide a clear path for PI to regain bullish momentum.
How will this bullish structure play out?
The analysis of the 4-hour chart shows that the price of PI has formed a cup and handle pattern.
At the time of writing, the latest price of the altcoin has also fallen, as the trading price of the asset has dropped to the resistance level.
Typically, once the price overcomes the handle resistance and breaks through the dashed resistance level, a full rebound will commence.
If it breaks through higher resistance levels, PI will experience a rebound whose magnitude is similar to the previous decline that formed the bottom of the pattern. If this altcoin returns to the $0-48 level on the chart, it could bring a 24% increase.
The low before the boom?
As of the time of writing, the Moving Average Convergence Divergence (MACD) indicator is firmly in the negative zone, with the signal line below the blue MACD line. In contrast, the histogram has changed from thick orange to light orange, indicating that selling pressure may be weakening and buyers may be gradually entering.
This pattern typically suggests the possibility of a rebound, especially when the cryptocurrency price touches the support level on the bullish pattern's handle.
Moreover, the Money Flow Index (MFI) also seems to be moving towards the positive territory. If this index enters positive territory, it indicates that market liquidity will further strengthen.
These inflows may enhance bullish momentum and increase the likelihood of a significant price increase in the coming days.
Bullish sentiment case
Finally, community sentiment data shows that 82% of the 4.2 million investors expect a market rebound soon.
When most market participants expect a bull market, the likelihood of a rebound increases, especially considering that these investors often drive up liquidity.
Therefore, PI is likely to continue this trend. However, traders must remain vigilant, as broader market conditions will affect whether and when this rebound occurs.