Pi Network’s native token PI has rebounded sharply after falling to an all-time low of $0.1533 during last Friday’s market crash. Over the past three days, altcoins bucked widespread bearish sentiment and posted steady gains as traders began to re-enter the market.
Technical indicators suggest that buying momentum is increasing and PI may break through the previous resistance level.
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PI Coin Shows Early Signs of Bullish Reversal
The readings on the PI/USD daily chart show that the red bar of the Elder Ray index has been steadily narrowing over the past few trades, indicating that the pressure on the sell side is gradually decreasing. As of this writing, this momentum indicator is -0.0482.
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The Elder Ray Index measures the strength of bulls and bears in the market. The return of red histogram bars that begin to decrease in size indicates that bearish momentum is weakening and buyers are gradually regaining control.
This pattern typically precedes a bullish trend reversal or short-term rally, especially if supported by other bullish signals.
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In the case of PI, a positive balance of power (BoP) figure supports this bullish outlook. At the time of writing, it is 0.59 and trending upwards, indicating increasing buy-side conviction among traders.
The BoP indicator measures the strength of buyers and sellers in a market. The BoP measurement ranges from -1 to +1, with values near +1 indicating strong buying pressure and values near -1 indicating strong selling pressure.
PI’s current BoP value of 0.59 reflects the gradual return of bullish sentiment among token holders. The upward trend in this indicator means that more market participants are accumulating altcoins rather than taking profits.
PI coin reversal materializes
Taken together, these trends indicate a gradual shift in market sentiment towards PI. If PI price maintains this trajectory, a break above the $0.2573 resistance could confirm a reversal and set the stage for a move towards the $0.2917 target zone.
On the other hand, a drop in the accumulation could trigger a return to the PI’s all-time low of $0.1533.
