On February 20, PI Network's eagerly anticipated mainnet launch took place, but the price dropped right away. However, even though the rest of the cryptocurrency market was declining, the price of the PI coin rose after its initial decline.
On February 27, PI hit a new all-time high before declining and closing just below its launch price. What will happen to PI next? Let's examine the charts and determine the answer.
Since its peak of $3 in February, the price of the PI has been below a descending resistance trend line, reaching a low of $1.51 on March 2.
The following day, PI broke out from the trend line after rebounding. But the $1.95 horizontal resistance area, which has been there since launch, rejected the price.
After that, the PI dropped and is currently trading near its pre-breakout level. The future PI trend will depend on whether it recovers $1.95.
Technical indicators have a bullish inclination. Both the Moving Average Convergence/Divergence (MACD) and the Relative Strength Index (RSI) are rising. Additionally, the MACD crossed above 0 and the RSI just crossed above 50.
Technical indicators and price action are therefore bullish, but they do not support the direction of the future trend.
The wave count is bullish, just like the PI price action. The count indicates that PI completed a five-wave increase, with wave four's symmetrical triangle serving as its defining feature.
A clear A-B-C corrective structure follows the all-time high, and it ends on March 2 at a low of $1.51. The probability that this is the right count is supported by the fact that waves A and C were almost the same length and ended at the 0.618 Fibonacci retracement support level (green icon).
This possibility will be confirmed by a clear close above the $1.95 horizontal resistance area, which would lead to an increase to at least $2.40. Once it reaches that point, the response can verify whether the increase is merely a relief rally or the start of a rise toward new highs.
However, the correction could get deeper if the PI price is unable to recover $1.95 and falls to the 0.786 Fibonacci retracement support level at $1.11.
In any event, the PI trend appears to be bullish. The price is currently correcting after beginning a five-wave upward movement in February.
Following its initial decline, the PI price recovered and on February 27 reached a new all-time high. Even though the PI price has since dropped, it recently broke out from a resistance trend line, which suggests that the correction may be coming to an end. An increase toward at least $2.40 can be sparked by regaining the $1.95 resistance.