Pi Network (PI) has been one of the biggest gainers in crypto recently. Over the past 24 hours, it grew by 20.5% and recorded a 142% increase in daily trading volume. These impressive numbers could be a sign of a change in trend for the altcoin.
Since last Friday’s low of $0.194, PI has risen 51% to $0.294. At the time of writing, it was challenging the $0.292 September 2025 resistance. Can the bulls score another victory?
The danger of a PI retracement
AMBCrypto had highlighted that the Pi Network token was one to watch this week. Its breakout past the $0.2 resistance zone occurred with high volume, invalidating the bearish daily structure and establishing a bullish structure.
At the time of writing, the structure remains bullish, but it may be overextended. The daily RSI was above 80 and represented the threat of forming a bearish divergence. Combined with the $0.29 to $0.30 supply zone, this could create conditions for an IP retracement.
OBV has been hitting new highs in recent weeks to signal continued buying pressure. Above-average trading volumes also indicate continued demand for PI.
Traders Should Not FOMO Now
Open interest almost doubled in the last 48 hours and the funding rate was still positive at press time. This showed that speculators may be betting on the recovery continuing.
A short squeeze beyond $0.3 is possible in the coming hours.
The 4-hour chart RSI was in overbought territory, but this does not guarantee an immediate pullback. It is still possible that PI rebounds beyond $0.30. Rather than buying at these levels, swing traders can wait for a retracement.
Fibonacci levels can help chart the next potential support zones. As it stands, the $0.23 area is a crucial demand zone. This is a previous local high that has since been reclaimed as a support level.
Final summary
- Traders should not hesitate to buy PI at these levels, although short-term gains could be possible.
- Over the next week, a retracement towards the $0.23-0.26 area could allow buyers to enter the market.
Disclaimer: The information presented does not constitute financial, investment, business or other advice and represents the opinion of the author only.
