Analysis of Pi Network Price: Is the Upward Trend Stalling or Getting Ready to Break Out?

After reaching $2.99 on February 27, the price of Pi Network (PI) has dropped nearly 40% in the past two weeks. However, technical indicators show that the momentum of PI is stabilizing, opening up opportunities for a recovery phase or at least a consolidation phase. DMI Shows Upward Trend Still But Momentum is Decreasing The Directional Movement Index (DMI) of PI indicates that the Average Directional Index (ADX) has decreased to 30.6 from 36.5 over the past two days. ADX is a trend strength indicator, with a value above 25 indicating a strong trend, while below 20 signals a weak or consolidating market. When ADX rises, it implies that the trend momentum is strengthening. Conversely, a decreasing ADX indicates that the trend may be weakening, even if the price continues to move in the same direction. A decreasing ADX of PI indicates that although the price is still in an uptrend, the momentum behind this trend is gradually weakening. In terms of +DI and -DI: The +DI indicator has surged to 27.3 from 12.3 two days ago and has remained stable since yesterday. The -DI indicator has dropped sharply from 29.3 to 14.9, indicating that selling pressure has significantly decreased and the buyer side is gaining the upper hand. However, the +DI maintaining stability and the decreasing ADX also indicate that the initial strong upward momentum may be pausing. This does not necessarily mean that the PI will immediately reverse, but it may enter a period of accumulation unless there is enough buying pressure to push the ADX back up. RSI Is Approaching Overbought Territory The Relative Strength Index (RSI) of PI has surged to 60.90, compared to 34.8 yesterday and 19.5 four days ago. This is an important signal reflecting a significant change in price momentum: RSI above 70 signals an overbought market, which may lead to a correction. RSI below 30 indicates an oversold market, often signaling a recovery. The rapid increase of RSI from oversold territory to near 61 indicates that buying pressure is dominating. Previously, RSI touched 68 before gently declining to its current level, suggesting the possibility of entering a consolidation phase for PI. History shows that the RSI level of 70 is an important resistance level since February 27. If the RSI continues to rise and surpass 70, PI may increase strongly, but also carries the potential risk of short-term adjustment due to profit-taking. Can PI Recover to $2.35? Currently, the PI price is trading within an important range: Resistance: $1.82Support: $1.57 If the upward trend continues and the buying side pushes the price above $1.82, the next target will be $1.98. If PI successfully breaks through this area, the upward momentum may be strengthened, paving the way for a potential return to the $2.35 price range. However, to achieve this scenario, PI needs to maintain strong buying pressure and confirm a breakthrough above $1.82. On the other hand, if the trend reverses: PI can retest the $1.57 support level. If this level is lost, the uptrend structure will weaken, opening the door to a deeper decline to $1.35. In case of strong selling pressure, PI may continue to drop to $1.23, marking a deeper correction phase. Conclusion The PI market is at a crucial juncture. The upward momentum is still present but showing signs of weakening. In the short term, PI may consolidate around the $1.57 - $1.82 range before determining the next trend. If the buying side maintains pressure, PI could recover to $2.35, but if it loses the $1.57 level, a deeper correction may occur. Investors should closely monitor market dynamics before making trading decisions.