Pi Network has been in a state of stagnation for almost two weeks, as the price shows no significant movements.
The altcoin has faced ambiguous market conditions; however, signs of improvement are emerging. As market sentiment stabilizes, Pi Network may anticipate a potential recovery in the near future.
Pi Network Needs Support
The Moving Average Convergence Divergence (MACD) indicator signals that the prolonged three-week bearish momentum of Pi Network may soon come to an end. The MACD line is approaching a crossover with the signal line, which will confirm a bullish crossover. This technical signal often generates optimism among investors, potentially leading to price increases.
As the bearish trend weakens and the MACD crossover occurs, the shift in market sentiment may restore investor confidence in Pi Network. A bullish crossover is likely to stimulate buying pressure, pushing the price upwards. The macroeconomic dynamics of Pi Network also indicate a potential recovery. The Chaikin Money Flow (CMF) indicator recently fell below the zero line, signaling an outflow of funds from the altcoin. The CMF reached its lowest point since early May, highlighting investor uncertainty. However, if outflows are controlled and inflows increase, Pi Network may see a change in price direction.
The unstable behavior of the market is primarily caused by indecision among investors who remain cautious. However, if the market stabilizes and the balance shifts towards positive inflows, the price of Pi Network may benefit from a recovery in investor confidence. Is a price increase for PI expected?
Currently, Pi Network is valued at $0.64, holding above the support level of $0.61 for the past two weeks. Despite the failure to achieve a significant recovery, the altcoin remains above its support level. If inflows improve and market conditions turn bullish, Pi Network may break through resistance at $0.71 and rise higher.
If market sentiment continues to improve, Pi Network may confirm a bullish trend by successfully turning resistance at $0.71 into support. This will create a strong foundation for sustainable price growth. However, if outflows continue to dominate inflows, the price of Pi Network is likely to remain stagnant above $0.61. If market conditions worsen, the price may drop below $0.61, falling to the next support level of $0.57. Such a decline would indicate that the bullish thesis is invalid, and the recovery of Pi Network may take longer to realize.#BinanceSquare #Write2Earn #BTC110KSoon? #crypto #trading $ETH