Pi Network (PI) experienced a remarkable 130% surge after breaking out from its $0.75 resistance level in early May. This rally was fueled by speculation of a potential Binance listing and a bullish breakout above the $1.40 resistance area. Despite reaching a high of $1.67 on May 12, the price failed to sustain momentum, forming a long upper wick and plunging by over 30%. Currently, the $1.40 zone remains a significant resistance, with technical indicators suggesting mixed signals. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) continue to rise, indicating bullish momentum, yet the overbought conditions may limit further gains.
What’s Next for PI?
Analyzing the six-hour time frame reveals a symmetrical triangle breakout that served as the catalyst for the recent price surge. The breakout validated $0.75 as a critical support, paving the way for the sharp rise to $1.67.
Technical indicators remain overbought, but the wave count analysis suggests that PI is in an extended wave three, indicating a potential move to the 0.618 Fibonacci retracement resistance at $2. However, the ongoing retracement to the $1.40 area raises questions about whether the bullish wave will resume or if further consolidation is necessary.
Also Read: Pi Coin Dips 25% as 8 Million Tokens Unlock – What’s Next for Pi Network?
Can PI Reach $2?
Despite the recent rejection at $1.40, the overall trend for PI remains bullish. The extended wave count implies that the retracement is part of a sub-wave four correction, after which another upward movement is anticipated.
If PI manages to break above the $1.40 resistance, the next target could be the $2 mark. However, traders should exercise caution, as the overbought conditions and lack of a confirmed breakout could signal further consolidation before any substantial upward move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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