- PI token has a trading volume of $95M, an increase of 80% in the last 24-hours.
- RSI is at 38 and risks falling into oversold territory if buying pressure rises.
- PI trades below both the 20 & 50 EMA; needs breakout above $0.7708 for bullish shift.
The PI token, which had reached its all-time high (ATH) of $2.98 in late February, shifted its gear to a downtrend after failing to maintain bullish momentum. The freefall lasted until mid-May, when the price briefly surged to around $1.50 before declining. At press time, PI is trading at $0.6187, representing a 3.58% decline in the last 24 hours, and has a market capitalization of $4.5 billion. Its trading volume surged by 80.40% to $95.69M, indicating renewed investor interest.
Technical Indicators: RSI and MACD
The Relative Strength Index (RSI) during the recent price surge reached 83, indicating an overbought condition. Since then, it has dropped significantly, even below the neutral zone, and trades at 38. If selling pressure increases, RSI is likely to fall below 30 and enter the oversold territory.
Source: TradingView
The Moving Average Convergence Divergence (MACD) line at -0.0391 is below the signal line at -0.0240, which indicates a bearish momentum. But the declining red histogram bars indicate weakening of bearish pressure and suggest a possibility for a bullish crossover.
Price Analysis Based on MA Ribbon and Fib Levels
PI is currently trading below both the 20-day and 50-day Exponential Moving Averages (EMAs), which confirms bearish momentum. The immediate resistance for PI is the 20-day EMA at $0.6977. If the price manages to break above this resistance, it could indicate a short-term bullish trend; however, for confirmation of the bullish trend, it needs to break the 50 EMA at $0.7708.
Source: TradingView
According to Fibonacci retracement, PI is trading below the 0.236 Fib level at $0.7832, which is near the 50 EMA. If trading volume for PI increases, it could lead to a breakthrough above the 0.236 Fib. Sustaining momentum beyond the 0.382 Fib level at $1.2072 and the 0.5 level at $1.5499 would signal a more prominent bullish trend. This would mean the trend has reversed from bearish to bullish sentiment, with hopes of reaching its all-time high.
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Although PI remains in a bearish zone, the recent uptick in trading volume and weakening bearish indicators suggest a potential shift in momentum. A short-term recovery is possible if the token breaks key resistance levels, particularly the 20 EMA and 0.236 Fib mark. However, caution is advised as failure to sustain buying pressure could lead to further downside. Investors should closely monitor price action and volume behavior around these technical levels for signs of a confirmed trend reversal.
