Date: Thu, March 27, 2025 | 08:15 AM GMT
Pi Network (PI) has been in a consistent downtrend since reaching its high of $3.00 on February 26. Over the last 30 days, PI has experienced a sharp 45% decline. However, today’s price action indicates a potential shift, as PI has broken out of a key technical pattern and could be on the verge of a recovery rally.
Source: Coinmarketcap
Breaks Out of Falling Wedge
Since hitting $3.00, PI has been trapped in a falling wedge pattern, continuously losing value until it reached an important support zone at $0.77 (marked in green on the chart). This level acted as a strong support, preventing further downside.
Pi Network (PI) 4-H Chart/Coinsprobe (Source: Tradingview)
Today’s breakout occurred around the $0.81 level, with PI quickly climbing to a local high of $0.90 before retracing to $0.85 due to insufficient buying volume. Despite this pullback, the breakout from the wedge formation is a bullish signal, indicating that sellers are losing strength.
Can It Break This MA to Confirm Uptrend?
With this breakout, PI now faces a crucial test—the 50-day moving average (MA), which is aligning with the key resistance level at $1.00 (highlighted circle in the chart). Breaking above this level is essential to confirm a trend reversal.
A successful breakout could trigger a recovery rally, targeting further resistance zones at $1.21 and $1.51. If PI manages to clear these levels, it could see an 80% increase from current prices.
What’s Ahead?
Despite the breakout, buying volume remains weak, which means PI needs stronger bullish momentum to sustain an uptrend. If more buyers step in and push the price above the 50-day MA, the asset could enter a solid recovery phase. However, failure to break this resistance could lead to further consolidation or even a retest of support.
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
