PI Network’s PI tokens have been locked into tight trading ranges since August 25th. The resistance is $0.3469 and holds support of nearly $0.3391.
Despite attempts to push higher on August 30th and 31st, Pi Bulls failed to violate the ceiling, and the token is stuck in the side-facing price action. The narrow movement reflects the ongoing tug of war between buyers and sellers, exacerbated by a lack of volatility in the market that has curtailed PI.
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The PI token surface reduces volatility
The inactivity performance of Pi Spot Market is reflected in the relative strength index (RSI). Momentum Indicator has been trading flat on the PI/USD one-day chart since its launch in September. At press, the RSI stands at 44.52.
The RSI indicator measures the market conditions for asset acquisitions and overselling. It ranges from 0 to 100. Values above 70 suggest that the asset is over-acquired and paid for a price drop, while values below 30 indicate that the asset is over-sold and may witness a rebound.
Flat RSI shows the relative balance between buying and selling pressure, emphasizing that neither side is currently dominant. This balance shows low market volatility. This shows that if it lasts, the price of the Pi can be kept within a narrow range.
Furthermore, the closure gap in PI’s Bollinger Bands confirms a reduction in market volatility, increasing risk for even longer periods within tighter ranges.
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The Bollinger Bands Indicator tracks prices compared to the moving average, with the upper and lower bands expanding during high volatility and contracting when market activity slows.
The tightening bands on the PI Daily chart suggest that Momentum is in decline, further supporting that PI may further expand its lateral trend.
PI Token Eyes are either $0.35 meetings or fresh lows
An explosive breakout usually follows such a low volatility period in either direction when a critical catalyst appears. Depending on where sentiment sways, this puts the PI at risk of upward spikes or downward breakdowns.
If demand is strengthened, the PI could outweigh the resistance at $0.3469 and push towards the $0.3587 level.
Conversely, a violation of support at $0.3391 could result in the token retesting an all-time low of $0.3220.
