Pi Network [PI] has been a strong performer over the past week. According to CoinMarketCap data, it was up by 16.1% over the past week and witnessed a 5% rally over the past 24 hours.
This was encouraging news, especially when contrasted against Bitcoin’s [BTC] 1.4% plunge over the previous day.
This relative strength might give PI bulls the confidence to go long. Yet, as AMBCrypto reported earlier in the week, the altcoin’s longer-term trend might not favor the buyers in the coming days and weeks.
Are PI prices in a value area for traders?
On the daily chart, the price was back at the psychological $0.20 supply zone. The gains it has made over the past three weeks were a heartening sight to speculators, but it could be a trap.
The long-term trend remained bearish. The current rally was likely part of a retracement before the bearish move can continue. In the lower timeframes, a triangle pattern was spotted recently, which led to a strong breakout.
This breakout has reached the 78.6% retracement level at $0.197. The OBV has made higher highs during the rally, and the Awesome Oscillator was back above the zero line. Together, they indicated buying pressure and positive momentum.
On the other hand, the CMF has remained below -0.05 for most of the retracement. This was a contradictory sign, but it agreed with the longer-term price action- bulls were likely too weak to reverse the downtrend.
Traders, is it time to sell PI?
It was nearly time to sell PI. The H4 trend was bullish, exemplified by the break of the lower high at $0.1788 (cyan). The most recent higher low was at $0.1857 (green), while a local resistance level at $0.2055 (white) opposed further bullish expansion.
On this timeframe chart, the technical indicators were all bullish. Yet, the higher timeframe trends must be respected.
Traders can wait for an H4 session close below $0.1857 to confirm the bearish bias. Meanwhile, a rally beyond $0.216 is needed to shift the 1-day structure bullishly.
Final Summary
- The Pi Network bullish breakout from the triangle pattern should not lull buyers into a false sense of security.
- The longer-term swing structure remained bearish, and $0.216 must be breached to shift this swing structure in favor of the bulls.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
