Pi Network (PI) has shown some signs of stability in the past week, with a 4.7% increase, following a turbulent month during which it experienced a significant 31.5% correction. While certain technical indicators like the DMI indicate a strengthening trend, others such as the CMF and EMA alignment suggest persistent bearish pressure. The current situation seems to involve a struggle between buyers and sellers, and the next move for PI may depend on the breakthrough of key support or resistance levels.
The Directional Movement Index (DMI) for PI has exhibited an improvement in trend strength, as indicated by the rise in its ADX to 17.17. Despite this increase, it remains below the critical 20 mark commonly associated with the onset of a robust trend. The ADX measures the strength of the trend rather than its direction, and a rising ADX, even at lower levels, typically signals a potential increase in market momentum.
Although the +DI (Positive Directional Indicator) for PI has escalated to 25.36, showcasing bullish pressure, it has slightly declined from its recent peak. Conversely, the -DI (Negative Directional Indicator) indicates diminishing bearish influence. If +DI surpasses -DI while the ADX continues to rise, PI could resume its upward trajectory. However, a weakening trend and a further climb in -DI could lead to a choppy or corrective phase in the price movement.
Pi Network's Chaikin Money Flow (CMF) has fluctuated around zero, currently standing at -0.06. This figure suggests a bearish sentiment, hinting that sellers currently hold more sway over buyers. The failed attempt to transition into positive territory, followed by a decline, may reflect uncertainty among buyers and the potential for a short-term decline in prices.
The exponential moving average (EMA) lines for PI continue to exhibit a bearish alignment, indicating continued downward pressure and a lack of strong bullish momentum. The support levels at $0.617 and $0.547 are crucial, with a potential slide in price if the former is breached. Conversely, a reversal coupled with sustainable upward momentum could change the outlook, with resistance levels at $0.789 and $0.85 acting as targets for an upward push. Breaking through these resistance levels could pave the way for further gains, with $1.04 representing a significant milestone in the price movement.