Pi Network’s native token PI extended its weekly gains to over 9% thanks to a recent node upgrade.
On Friday, the project confirmed that the majority of mainnet node operators had successfully upgraded to the new v25 protocol version. He urged other remaining operators to upgrade their systems as soon as possible.
The node upgrade follows another network upgrade earlier this year, aiming to make it more decentralized.
Can PI break the June sales wall?
Traders treated the update as a bullish catalyst, as PI price surged as high as $0.14, extending its 9% weekly rebound.
Unfortunately, the $0.14 area acted as a key short-term sell wall (red) in June. In fact, at press time, there was a rising candlestick wick (on the 12-hour chart), suggesting that sellers (bears) were already active at the sell wall.
If sellers continue to pile into the zone, then the sell wall could once again prevent the bulls from advancing.
Perhaps further confirmation of a pullback could be highlighted by the MACD death crossover. At the time of writing, such a bearish signal could not be ignored, especially if BTC moves down towards $60,000.
On the contrary, sustained relief for Bitcoin (BTC) around $66,000 could invalidate the above thesis. Such a scenario would encourage bulls to break above the $0.14 ceiling, thereby increasing the chances of a further rise to $0.15 and $0.155.
Market sentiment returns to neutral
Notably, during the network upgrade, market sentiment around the token briefly turned positive. This coincided with the rally seen over the past two days. However, at the time of writing, market sentiment fell to negative before moving closer to the neutral level.
This meant the price could go either way. Therefore, BTC’s next direction could be largely influenced if there is no further positive ecosystem update in the near term.
Overall, PI reversed prior weekly losses and recorded a 9% recovery gain. However, the rally hit a familiar selling wall that could attract short sellers. If so, a price rejection at $0.14 could result in PI at $0.13 or lower.
Final Summary
- The PI Network node upgrade became a bullish catalyst and sent the altcoin up 9%.
- Market sentiment has turned neutral, suggesting that the next PI price direction could be determined by BTC.
