On Saturday, the PI Network token closed above the upper boundary of its horizontal channel, signaling a potential bullish breakout.
Over the past 24 hours, improving market sentiment has fueled the altcoin’s rally. It has climbed 2% and looks poised to extend its gains further.
PI Breakout Sparks Optimism for Sustained Price Rally
Readings from the PI/USD one-day chart show that yesterday, PI’s price broke above the upper line of the horizontal channel. This channel had prevented any significant upward movement between August 2 and August 8.
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This breakout propelled PI to 16% gains during yesterday’s trading session. When an asset breaks above a key resistance line like this, it suggests renewed bullish sentiment and the possibility of a sustained rally.
For PI, this breakout could mark the start of a stronger upward trend as traders gain confidence and momentum builds.
Strong Buying Interest Pushes PI Higher
Today, PI has maintained its rally, climbing by 2%. A surge in trading volume accompanies this price increase. Over the past 24 hours, it has jumped nearly 150% to reach $270 million by press time.
Rising price combined with increased trading volume like this confirms the strength of a trend. It indicates that more participants are actively buying, supporting the price movement and reducing the likelihood of a false breakout.
For PI, the volume surge strengthens the positive momentum and suggests that the rally may continue in the near term.
Additionally, PI’s rally over the past two sessions has pushed its price above the 20-day exponential moving average (EMA), confirming growing demand. At press time, this key moving average forms dynamic support under the token’s price at $0.4038.
The 20-day EMA measures an asset’s average price over the past 20 trading days, giving weight to recent prices. When an asset’s price trades above its 20-day EMA, short-term bullish momentum is growing as buying interest surges.
This confirms the asset is in an upward trend and may continue to gain strength.
PI Rally Gains Traction, Eyes $0.52
If buying momentum continues, PI could extend its rally and attempt a break above the key resistance level at $0.4451. A successful breakout above this barrier may propel the price toward $0.5281.
Conversely, if traders begin taking profits, PI’s price could retrace to support near $0.3773.
The post PI Network Eyes Major Upswing as New Demand Emerges appeared first on BeInCrypto.
