Pi Network (PI) has experienced a significant drop of around 43% in the last four days after peaking near $3. Despite this recent decline, technical signals hint at a potential stabilization in the downward trend, with both the DMI and BBTrend indicators suggesting a pause in the momentum.
In the event of a bullish resurgence, PI may attempt to breach key resistance levels, paving the way for a potential climb towards $3. Conversely, if selling pressure escalates, PI could dip below $1.50 and explore lower price ranges.
The Directional Movement Index (DMI) for Pi Network indicates a diminishing downtrend momentum, illustrated by a notable decrease in trend strength. The Average Directional Index (ADX) dropped from 37.5 to 16, signaling a weakened prior downtrend.
Moreover, PI’s +DI has decreased while the -DI has risen, suggesting a decline in bullish force and an increase in selling pressure. Despite being in a downward trend, the overall trend strength remains low, implying a potentially sluggish downtrend rather than a steep decline.
The BBTrend indicator for PI, derived from Bollinger Bands, has been negative but is showing signs of improvement from recent lows. While still negative, the BBTrend moving towards a less extreme level indicates a reduction in selling pressure and a possible stabilization in the market.
Looking ahead, if PI manages to break above the $1.80 resistance level, it could signal renewed buying interest and potentially propel the price towards $2.35. Strong bullish momentum might even push PI to retest the $3 mark, marking a significant milestone if achieved.
However, a failure to maintain upward momentum could result in PI testing the $1.50 support level, potentially leading to further declines. It remains critical for buyers to regain control to push PI beyond resistance levels and sustain a positive price movement.
Overall, the recent developments suggest a potential shift in PI Network's trajectory, with both upside and downside scenarios dependent on market dynamics and investor sentiment.