The Pi Network [PI] token has shown little significant movement recently. It recorded gains of 0.12% in the last 24 hours and 0.39% over the past week at the time of writing.
This price behavior coincided with Bitcoin [BTC] fluctuating between $85k and $90k.
The lack of a clear trend in PI’s price is not reflective of a network with minimal development activity and user growth. Several noteworthy events have occurred in recent months.
For instance, the Fast Track KYC feature, introduced in September, accelerated Pi’s standard KYC process by incorporating AI into its validation process.
Furthermore, the Pi2Day celebration included the announcement of two new ecosystem features and various technological and product updates. The winners of the December hackathon were revealed, with first place awarded to Blind Lounge, a privacy-focused dating and social platform.
Despite these developments, PI has not experienced a sustained uptrend. The technical indicators did not indicate long-term bullish momentum.
Is there potential for PI to recover?
Source: PI/USDT on TradingView
Since late November, PI has been in a downtrend. The bullish structure observed in November has been completely retraced. The $0.215 level, which acted as support in the first half of the month, did not pose a significant barrier to the sellers on the way down.
The rally from December 16th to 19th saw a price increase from a low of $0.192 to $0.218. The failure to reclaim the $0.215 level as support during this rally indicated the dominance of sellers.
Why a bullish scenario for PI is unlikely
The moving averages (20DMA at $0.205 and 50DMA at $0.221) on the daily chart are expected to act as resistance for PI. The overall structure remains bearish, and a move above $0.218 is necessary to shift towards a bullish outlook.
Additionally, the On-Balance Volume (OBV) has remained stagnant over the past two weeks, reflecting weak demand. Without a change in this pattern, a bullish scenario is less likely.
Traders’ strategy – Patience is key
A simple plan for traders is to wait for a breakout above $0.218 and a retest of this level as support before considering a long position, provided there is increased buying pressure. Positive momentum in Bitcoin [BTC] could also support a bullish case for PI.
Alternatively, traders can wait for the price to drop below the local support at $0.2 to initiate a short position, aligning with the prevailing downtrend. Potential price targets for a bearish scenario would be $0.191 and $0.185.
Final Thoughts
- Pi Network has introduced several new features in recent months, indicating ongoing development efforts.
- Despite these updates, the price of PI has not seen significant appreciation, with bearish sentiment prevailing.
Disclaimer: The information provided is the writer’s opinion and does not constitute financial, investment, trading, or other forms of advice.