Pi Network (PI) is showing signs of recovery, edging up nearly 1% on Wednesday. This movement follows a previous day’s modest gain of 0.40%, indicating a potential rebound from the critical price level of $0.20. The rise in social engagement surrounding Pi Network may be fueling retail interest as the New Year approaches.
Recent data from Santiment reveals a significant increase in Pi Network’s social dominance, which tracks the share of discussions about PI within cryptocurrency media. This metric rose to 0.086%, a notable increase from 0.008% just the day prior. Such a spike indicates a burgeoning retail interest in PI, possibly reflecting anticipation of a price rebound as 2024 begins.
Technical Indicators Suggest Optimism for PI
Despite facing challenges in maintaining upward momentum, Pi Network continues to trade above the $0.20 mark. Currently, the token is preparing for what technical analysts refer to as a Morning Star pattern, a bullish signal that could see prices rise. On the previous day, PI recorded a 1.17% decline, but today’s movement suggests a potential reversal.
The technical outlook for PI indicates that a successful completion of the Morning Star pattern could propel the token toward the 50-day Exponential Moving Average at approximately $0.2191. However, momentum indicators present a mixed picture. The Relative Strength Index (RSI) currently stands at 41, suggesting neutral to bearish pressure, while the Moving Average Convergence Divergence (MACD) shows a gradual rise in bullish momentum, evidenced by increasing green histogram bars.
Trading volume has fluctuated this month, remaining above 7 million PI on most days in December. However, it saw a significant drop from 38.65 million PI on December 1 to 8.58 million PI by Wednesday, reflecting changing market dynamics.
What Lies Ahead for Pi Network?
Looking ahead, if Pi Network’s price dips below the low of $0.1919 recorded on October 11, it may face further testing at the S2 Pivot Point, currently set at $0.1593. The cryptocurrency market remains inherently volatile, and the successful navigation of these technical indicators could determine the future trajectory of PI.
As retail interest grows and technical indicators suggest potential bullish patterns, the coming weeks will be critical for Pi Network. Investors and analysts alike will be closely monitoring the developments to ascertain whether the anticipated rebound will materialize in the New Year.
