The Pi Network (PI) opened in a sudden drop in August, reaching a new all-time low of $0.32 on August 1st.
Although Altcoin has since managed a modest recovery to $0.36, bearish sentiment continues to dominate. This suggests a potential revisit for lower or steeper cycles below this level over several weeks.
PI rises by 4%, but negative divergence threatens momentum
The price of the Pi was favored to record the modest dip from the broader market to record a significant profit today. Over the past 24 hours, token prices have risen by 4% to $0.36. This short-term price rise could indicate a faint light of optimism for PI owners, but technical indicators suggest that attention remains important.
First, while prices have risen over the past 24 hours, a decline in PI trading volume is a source of concern. In the past day, PI trading volume has plummeted by nearly 30%, currently at around $112 million.
This volume decrease with rising prices can lead to negative divergence. This indicates that there is no significant support for the upward momentum of the PI.
Furthermore, measurements from the parabolic stop and inverse (SAR) of PI confirm this bearish outlook. At the time of this writing, the dots that make up the indicator exceed the price of the token, providing dynamic resistance at $0.47.
Asset parabolic SAR indicators identify directions and reversals of potential trends. The market is on the upward trend when that dot is placed under the asset price. It shows that the asset is witnessing bullish momentum, and if purchases continue, its prices could continue to rise.
Meanwhile, prices fall under these dots, indicating that the market is in a downtrend. This suggests that bearish momentum and further PI prices could drop unless a bullish reversal occurs.
Bear’s Grip Pie is approaching an all-time low – only fresh demand can save it
On the daily charts, the PI vibrates between support floors formed at a new all-time low of $0.32 and a resistance level of $0.40 above the price. With the bear still in control, Pi could resume its decline and attempt to break down at or below its history low.
However, once new demand resurfaces, the price of the Pi could rise above $0.40, up to $0.46.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always carry out your research and consult with an expert before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
