PI coin prices have been struggling to impress traders these days. Tokens have been trading flat over the past 24 hours, down approximately 3.4% over the past week. On a yearly scale, Pi Coin’s performance is even weaker, with losses of over 61%.
The steady downtrends make the latest technical signals even more prominent. The indicators on the chart suggest that a potential reversal may have been formed, and suggest a rally in the event of pressure.
RSI divergence suggests inversion
The first key signal is the bullish divergence of the daily relative strength index (RSI). Usually, when prices go to new lower prices, the RSI also gets new lower.
However, for Pi Coin, between August 19th and August 25th, the prices were lower and the RSI created a higher and lower value. This discrepancy is called bullish divergence.
Bullish divergence is often read as an indication that selling momentum is weaker even while prices are falling.
It allows the buyer to quietly start taking control to mark a turning point. This exact setup also appeared in early August. At the time, a similar divergence preceded the rallies at 39% of the Pi Coin price, ranging from $0.33 to $0.46. This repetition of the pattern suggests that the token can be set up for another upward movement.
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MFI and Bull/Bear Power Backs Bull Signals
The bullish case exhibited by RSI is further enhanced by two indicators.
The Money Flow Index (MFI), which combines price and volume to measure trading pressure, has been at a higher price since mid-August. This means that buyers continue to put in fresh capital, even if prices fell.
At the same time, the Bull/Bear Power Index, which compares current price levels with moving averages, indicates that bearish momentum is declining.
Earlier this month, a short-lived but sharp rally went to $0.46, following a similar decline in bearish strength in the RSI divergence phase. MFI and bull/bear power are combined to add weight to the divergence of the RSI, pointing to a shift to accumulation.
Important level of monitoring PI coin prices
PI Price Action also reflects this cautious optimism. Pi Coin has recently been locked at its main support area of $0.33. If bullish divergence occurs, the first major rise target is $0.46. This is the level tested in the final divergence-driven rally. This marks a gain of about 40% from the current level.
However, some important short-term resistance levels, including $0.37 and $0.40, must be expanded first.
If you have strong momentum, you could also make a stretch move to $0.52. However, if your Pi Coin is below $0.32, bullish setups will be disabled and the risk of fresh lows will increase.
The Pi Coin chart suggests a turnaround. This is why 40% of meetings can first appear on Beincrypto.
