In mid-February, AMBCrypto had warned that a Pi Network [PI] rally looked more like buyer exhaustion than a bullish reversal.
During that rally, PI had moved 58.1% higher in 4 days, on the back of high Spot Volume.
However, it ran into the $0.2 supply zone and was unable to overcome it. At the time of writing, PI was trading at $0.171.
The rejection from the overhead supply has come true, but what is likely to follow in March? An argument can be made for a bullish breakout and a long-term trend shift for PI, especially if Bitcoin can push past $70k.
The chances of a PI breakout past $0.2
Source: PI/USDT on TradingView
The rejection from $0.2 did not send PI prices below the $0.13 local lows. Such a scenario would have been a clear signal of bearish intent.
Instead, the altcoin prices fell to $0.16 and rebounded.
At the same time, the OBV did not see a steep drop-off from the mid-February rally levels. This meant that selling pressure was not high. Additionally, the 20 and 50-day moving averages were on the verge of making a bullish crossover.
Over the past week, the 20DMA has served as a dynamic support to Pi Network token prices.
The lack of selling pressure and the challenge of the $0.173 level suggested a move higher could occur in the short-term.
Pi Network short-term price prediction
Source: PI/USDT on TradingView
The H4 local resistance at $0.1788 would likely be a firm test of bullish resolve.
At the time of writing, the altcoin was approaching the apex of a triangle pattern (orange). The direction of the breakout from this chart pattern could determine the next impulse move.
It is possible that a Bitcoin [BTC] short squeeze could give the altcoin market some temporary respite. In this case, a PI move toward $0.2 and the $0.216 local high could materialize.
Final Summary
- PI’s short-term direction hinged on the direction of the breakout from the triangle pattern.
- The Pi Network price prediction is a move toward $0.20 and $0.216, provided Bitcoin can climb above $70k and maintain the momentum.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.