PI, the native token of the PI network, made a breakout on the daily charts on Friday, surpassing the line of resistance that has been making profits since mid-August.
This move comes amid new momentum across the broader crypto market. As technical indicators show a surge in demand, PIs may be on top of fresh legs.
Market sentiment changes as PI clears barriers
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In Friday’s trading session, PI concluded the day above the horizontal channel cap, where demand rose sharply and prices remained sideways since August 19th.
Its ceiling, formed at the $0.3587 level, is now turned over on the support floor, indicating a major shift in market sentiment.
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PI pushes past resistance with new demand
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Measurements from PI’s technical indicators confirm this surge in new demand for tokens. For example, the token’s chaikin money flow (CMF) is currently above the zero line, and is on an upward trend, indicating buy-side pressure. At press time, the metric is at 0.04.
The CMF measures the strength to buy and sell pressure by tracking how capital enters and exits assets over a set period.
A CMF value above zero indicates that money is flowing into the token, while a value below zero indicates an outflow.
In the case of PI, a CMF of 0.04 during the price rally indicates that investors are actively accumulating tokens rather than selling strength. This trend suggests that breakouts are supported by true demand, reducing the likelihood of false movements and enhancing cases for further benefits.
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Additionally, past day-long PI gatherings have driven prices above the 20-day index moving average.
The 20-day EMA measures the average price of assets over the last 20 days, giving more weight to recent prices.
Trades when assets exceed the 20-day EMA reflect short-term bullish momentum, suggesting that recent buying activity is strong enough to exceed the average trend.
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Above this level of PI indicates that the Bulls are under control and the EMA could act as a dynamic support floor for potential pullbacks. It can also provide a base for the token to maintain an upward trajectory.
Pi Eyes $0.39 Breakout as strength in the Bulls Test market
If demand rises, the PI can attempt the next major resistance violation for $0.3903. A break beyond this barrier could turn the rally’s stage at $0.4661.
However, the PI may return to the landscape pattern due to a failure to retest the breakoutline. If the selloff gets worse, it could fall below the support formed by the 20-day EMA and plummet to $0.3391.
