The Pi Network (PI) token has not seen a dominant trend recently. Its 24-hour and 1-week gains were 0.12% and 0.39%, respectively, at the time of writing.
This price action coincided with Bitcoin (BTC) hovering between $85,000 and $90,000.
Additionally, the lack of a strong trend in PI price action was not due to a network with little development activity and user growth. In recent months, significant events have taken place.
The Fast Track KYC feature, introduced in September, made Pi’s standard KYC faster by integrating AI into its validation process.
In fact, the Pi2Day celebration included the announcement of two new ecosystem features and various technology and product updates. The winners of the December hackathon have been announced, with first place going to Blind Lounge, a privacy-focused dating and social media platform.
They were not enough to revive PI in a sustained upward trend. Technical data has not shown long-term bullish strength.
Does IP have recovery potential?
Source: PI/USDT on TradingView
Since the end of November, PI has been in a downward trend. The previously bullish internal structure of November has been completely retraced. The $0.215 level had provided support during the first half of the month, but it posed almost no obstacle to sellers on the downside.
The December 16-19 rally extended from a low of $0.192 to $0.218. The failure to reclaim the $0.215 area as support during this rally showed seller dominance.
Why the bullish scenario is unlikely for PI
The moving averages (20DMA at $0.205 and 50DMA at $0.221) on the daily chart were likely to act as resistance to the IP. The structure remained bearish and a breach of $0.218 is required to move it higher.
Additionally, OBV has remained stable over the past two weeks, reflecting slow demand. Unless this changes, the bullish scenario would be unlikely.
Call to Action from Traders – Wait!!
This plan is relatively simple. Wait for a breakout beyond $0.218 and retest as support to go long, provided there is increased buying pressure. Positive momentum for Bitcoin (BTC) would also help PI’s bull case.
Traders can also wait for the price to fall below the local support of $0.2 to take a short position. This would correspond to the long-term trend. The bearish scenario price targets would be $0.191 and $0.185.
Final Thoughts
- Pi Network has seen many features rolled out in recent months, signaling constant development activity.
- This was not enough to cause IP price appreciation, and the bears remained dominant.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
