Pi Network (PI) is causing a frenzy in the world of altcoins in 2025. With its price surging over 200% in just a week, coming close to hitting $3, investors are on the edge of their seats. Despite this impressive run, signals from technical indicators hint that the bullish trend may be running out of steam.
Looking at the DMI, it's evident that buyers are still holding the reins, but the gap between the positive and negative directional indicators is narrowing, indicating a weakening bullish stance. Moreover, PI's RSI has cooled down from extreme overbought territories, and its EMA lines are hinting at a potential reversal, casting doubts on its bullish trajectory.
PI's DMI data reveals that the ADX has jumped from 9 to 62.7 in a short span, currently standing at 37.6. The ADX gauges trend strength without specifying its direction, with values above 25 signaling a robust trend and below 20 indicating a subdued market. As +DI declines to 23.6 from 57 and -DI rises to 20 from 1, the balance is shifting towards a bearish sentiment. Though PI remains in an uptrend as +DI outweighs -DI, the diminishing gap between the directional indicators points to a possible trend reversal if +DI dips below -DI.
Moving on to the RSI, PI's current reading of 52.2 signifies a return to neutral levels after hitting a staggering high of 95 previously. With values above 70 pointing to an overbought scenario, the retreat to 52.2 suggests a cooling off of buying pressure, hinting at a consolidation phase underway.
While PI's EMA lines maintain a bullish outlook, the weakening momentum reflected in the latest DMI and RSI figures raises concerns. Despite being a buzz in the market, recent observations reveal a downtrend in buying pressure, with a rise in bearish sentiment potentially impacting the positive market sentiment of past days. A convergence in EMA lines might signal a trend reversal, jeopardizing PI's bullish stance.
Looking ahead, if PI can revitalise its uptrend, it could challenge the $3 mark for the first time, with a potential push towards $3.5. Conversely, a trend reversal might lead to a test of support levels at $1.69, potentially slipping further to $1.42 and even bottoming out at $0.8, marking a substantial 68% correction. Stay tuned for the next chapter in the thrilling saga of Pi Network.