PI Network (PI) surged over 70% in the past 24 hours, pushing its market cap to $16 billion, with a trading volume exceeding $2.3 billion in the last 24 hours.
Despite reaching a historic high of $3, this technical divergence suggests that the path forward for PI is a volatile one. As the token navigates bullish momentum, traders are closely watching, which could push it towards $4, while warning signs may indicate a correction to support levels as low as $1.7 or even $0.79.
Despite reaching a historic high of $3, this technical divergence suggests that the path forward for PI is a volatile one. As the token navigates bullish momentum, traders are closely watching, which could push it towards $4, while warning signs may indicate a correction to support levels as low as $1.7 or even $0.79.
The DMI of the PI network shows a very strong upward trend.
The Directional Movement Index (DMI) of PI Network has shown significant momentum, with its Average Directional Index (ADX) rising from just 12.3 to 57.7 daily. The ADX is a key technical indicator that measures the strength of a trend, regardless of its direction. Readings below 20 usually indicate a weak trend, 20-40 indicate a moderate trend, and values above 40 indicate a strong trend. This sharp increase in PI's ADX from weak to very strong territory indicates a significant strength of the potential trend.
pi dmi. Source: TradingView.
PI's positive directional indicator (+DI) has sharply risen from 14.6 two days ago to 40.9, while its negative directional indicator (-DI) has dropped from 19.4 during the same period to 1.1.
When +DI is significantly above -DI, as is currently the case with PI, it confirms a strong bullish trend. High ADX values combined with the wide distribution between +DI and -DI indicate that the PI Network is experiencing a particularly strong upward trend with minimal selling pressure.
If these technical signals maintain their current configuration, they may lead to a sustained upward movement in PI in the short term, as the market seems to be under strong buying control with minimal resistance.
Despite the price increase, the Pi Bbtrend remains negative.
Despite the continued price rise, PI's Bollinger Bands trend indicator (BBTREND) has dropped to -11, marking a sharp decline from yesterday's reading that hovered between 1 and 3 at 51.2.
The BBTREND indicator is a specialized technical tool that measures price movements based on Bollinger Bands. It essentially quantifies the trends of prices within these volatility-based channels.
Positive readings indicate upward movement in price relative to the bands, while negative values indicate downward movement or regression towards the middle bands.
Pi Bbtrend. Source: TradingView.
This sharp drop to -11 in PI's BBTREND may indicate that the current upward trend is significantly overextended and may be susceptible to correction or consolidation phases.
When BBTrend is particularly negative after a price rise, it typically indicates that the asset has moved too quickly and is now trading at levels that may not be sustainable in the short term.
This technical warning signal indicates that PI may correct towards the middle Bollinger Band (Sideways Consolidation) or at least slow down its upward momentum.
Can PI Network reach $4 in March?
The price of PI Network has just reached a new high only a few hours ago, as its price nears $3 for the first time.
With such strong upward momentum, PI may continue to rise, breaking through the psychological barrier of $3 and testing higher resistance levels at $3.5 or even $4 in the short term.
This impressive rally suggests that if positive sentiment persists, growing market interest and buying pressure could sustain further upward potential.
PI Price Analysis. Source: TradingView.
However, as indicated by negative readings, this rally may be overextended and carries a risk of reversal. If downward technical signals manifest as price actions, PI may undergo a substantial correction, initially testing support at $1.7. If this level fails to hold, further declines could occur down to $1.42 as selling pressure intensifies.
In the face of strong downward pressure, PI's price may experience a more dramatic correction to $0.79, representing its lowest level in five days, and a significant retracement from the current high.
Finally, everyone, don't forget to follow, let's achieve financial freedom together in this bull market, okay?
