PI has been in a continuous downtrend since reaching an all-time high of $3 on February 26th. In fact, it has been trading below the downtrend line since April 12th, which emphasizes the negative bias towards altcoins.
However, the situation may finally change. Technical indicators now point to a potential bullish revival, suggesting a short-term rebound for PI.
PI, Quiet Accumulation Phase... Rally Trigger?
According to BeInCrypto's PI/dollar daily chart assessment, the altcoin may be preparing for a bullish breakout. For example, the On-Balance Volume (OBV) has surged over the past two days, showing signs of initial accumulation.
The OBV indicator uses volume to predict price movements, adding volume on up days and subtracting volume on down days. When this value rises like this, it suggests a surge in buying pressure.
OBV is considered a leading indicator, often moving ahead of price movements and signaling changes in market sentiment before they are reflected in asset prices. Therefore, PI's rising OBV indicates that buyers are quietly accumulating tokens, even though the price remains suppressed.
This difference suggests that bullish momentum is forming, and the likelihood of PI breaking out increases when market-wide sentiment aligns.
Additionally, the red bars of PI's BBTrend indicator are gradually decreasing. This reduction suggests that selling pressure is weakening and serves as an initial signal that the current downtrend is losing strength.
In technical analysis, the contraction of the BBTrend histogram is a harbinger of a potential trend reversal, especially when accompanied by increased volume and other bullish indicators.
Shorter bars indicate that PI market volatility is stabilizing and the possibility of a bullish price transition is increasing.
PI Shows Bullish Signals, Will It Break $1?
PI is currently trading at $0.591, positioned below the downtrend line, which forms resistance at $0.605. If bullish pressure strengthens and PI demand surges, it could transform this price level into a support line and rise to $1.01.
PI Price Analysis. Source: TradingView
Conversely, if selling continues, the PI token could revisit its all-time low of $0.40.
