The price of Pi Network has been struggling to impress investors recently. The token remained stable over the last 24 hours and has fallen about 3.4% in the past week. On a one-year scale, the performance of Pi Coin has been even weaker, with losses exceeding 61%.
The constant downtrend further highlights the latest technical signals. Indicators on the charts suggest that a possible reversal may be forming, indicating a rise if buying pressure increases.
RSI divergence suggests reversal
The first key signal is a bullish divergence on the daily Relative Strength Index (RSI). Normally, when the price hits a new low, the RSI also hits a new low.
But in the case of Pi Coin, between August 19 and August 25, the price hit a lower low while the RSI created a higher low. This discrepancy is called bullish divergence.
Pi Coin RSI Divergence: TradingView
Bullish divergence is often interpreted as a signal that the selling momentum is weakening, even as prices continue to fall.
Could mark a turning point where buyers begin to take control discreetly. This same scenario also appeared in early August. At that time, a similar divergence preceded a 39% increase in the price of Pi Coin, from $0.33 to $0.46. The repetition of this pattern suggests that the token may be preparing for another upward move.
MFI and Bull/Bear Power support the bullish signal
The optimistic scenario displayed by the RSI is reinforced by two more indicators.
The Money Flow Index (MFI), which measures buying and selling pressure by combining price and volume, has been recording higher highs since mid-August. This means that even with the price drop, buyers have continued to invest new capital — a sign of buying activity on the dip.
Pi Coin Buyers Continue Buying the Dip: TradingView
At the same time, the Bull/Bear Power index, which compares current price levels with moving averages, shows that bearish momentum is decreasing.
Decreasing Bearish Strength: TradingView
A similar drop in bearish strength at the beginning of this month, during the RSI divergence phase, was followed by a short but sharp rise to $0.46. Together, MFI and Bull/Bear Power add weight to the RSI divergence, pointing to a shift towards accumulation.
Key levels to watch in the price of Pi Coin
The price action of Pi Network also reflects this cautious optimism. Recently, Pi Coin has held steady at $0.33, a key support area. If the bullish divergence materializes, the first major bullish target is at $0.46 — a level tested during the last divergence-driven rally. This would represent a gain of about 40% from current levels.
Price Analysis of Pi Coin: TradingView
However, some short-term resistance levels, including $0.37 and $0.40, need to be overcome first.
If momentum remains strong, a move towards $0.52 may also occur, provided $0.46 is reclaimed. However, if Pi Coin falls below $0.32, the optimistic scenario would be invalidated, and the risks of new lows would increase.
The article Pi Network Charts Indicate Recovery: Why a 40% Surge Could Be Near? was first seen on BeInCrypto Brazil.