Pi Network (PI) has been performing very well over the past week. According to data from CoinMarketCap, it rose 16.1% over the past week and saw a 5% rise in the last 24 hours.
This is encouraging news, especially when compared to Bitcoin (BTC)’s 1.4% drop the day before.
This relative strength could give IP bulls the confidence to go long. Still, as AMBCrypto reported earlier in the week, the altcoin’s long-term trend may not favor buyers in the days and weeks to come.
Are IP Prices in a Value Zone for Traders?
Source: PI/USDT on TradingView
On the daily chart, the price returned to the psychological supply zone of $0.20. The gains over the past three weeks have been an encouraging sight for speculators, but this could be a trap.
The long-term trend remained bearish. The current rally was likely part of a retracement before the downside move could continue. In the lower timeframes, a triangle pattern was spotted recently which led to a strong breakout.
This breakout reached the 78.6% retracement level at $0.197. OBV made higher highs during the rally and the Awesome Oscillator was back above the zero line. Together, they indicated buying pressure and positive momentum.
In contrast, the CMF remained below -0.05 for most of the retracement. This was a contradictory sign, but it was consistent with long-term price action: the bulls were likely too weak to reverse the downtrend.
Traders, is it time to sell PI?
Source: PI/USDT on TradingView
It was almost time to sell PI. The H4 trend was bullish, illustrated by the break of the lower high at $0.1788 (cyan). The most recent low was at $0.1857 (green), while a local resistance level at $0.2055 (white) opposed further bullish expansion.
On this time-series chart, the technical indicators were all bullish. However, higher time trends must be respected.
Traders can wait for a H4 close below $0.1857 to confirm the bearish bias. Meanwhile, a rally beyond $0.216 is required to change the 1-day structure bullishly.
Final summary
- The Pi Network’s bullish breakout from the triangle pattern should not lull buyers into a false sense of security.
- The long-term swing structure remained bearish, and $0.216 must be breached to move this swing structure in favor of the bulls.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
