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Pi Network (PI) is attempting to break through its long-term downtrend line despite a general weakening of investor sentiment in the cryptocurrency market. Attention is focused on the possibility of a rebound to $0.1049, depending on whether it can break the $0.0788 resistance level.
According to investment media FXStreet on November 2 (local time), Pi Network was trading around $0.0784 on the day, attempting to break the long-term downtrend resistance line of $0.0788, which connects the highs of June 20 and September 30. Despite the overall bearish sentiment in the cryptocurrency market, interest from investors appears to be recovering in the PI futures market, with new positions increasing. Technical indicators also suggest a short-term upward potential as selling pressure eases, according to analysis.
According to Blockworks, Pi Network's futures Open Interest increased from $7.91 million last week to $8.55 million. This signifies an expansion in the notional value of outstanding futures contracts in the market, suggesting that investors are increasing their positions, anticipating further increases in spot prices. Conversely, CoinMarketCap's Fear and Greed Index fell from 43 last week to 36 today, entering the 'Fear' zone. The recent $6 billion Binance hacking incident, which caused Bitcoin (BTC) to dip below $77,000 at one point last week, is believed to have weakened overall risk asset preference in the market.
Technically, Pi Network is trading just below the long-term resistance level of $0.0788, and also below the 50-day Exponential Moving Average (EMA) of $0.0828 and the upper moving average of $0.1114. However, on the daily chart, the Moving Average Convergence Divergence (MACD) showed an early sign of recovering upward momentum by crossing above its signal line in the negative territory. The Relative Strength Index (RSI) also rose to 45, moving out of the oversold zone and approaching the neutral level of 50. This is evaluated as an indicator showing the possibility of buying power recovering as downward pressure gradually weakens.
The key price to confirm a future uptrend reversal is $0.0788. FXStreet analyzed that if Pi Network decisively breaks this long-term downtrend resistance line, a bullish trend reversal signal could be formed. In this case, the first upward target is the 50-day EMA at $0.0828, followed by $0.1049, which is the Fibonacci 50% retracement level of the downtrend from $0.1394 to $0.0704, as the next target. However, since the current price remains below major moving averages, it is difficult to conclude an uptrend reversal until the resistance breakthrough is confirmed.
Conversely, if selling pressure intensifies again, the first major support level is the low of October 15 at $0.0740. If this price level breaks, $0.0704 could act as the next key support. FXStreet assessed that Pi Network shows a moderate upward potential based on increased futures open interest and improved technical momentum, despite the overall market fear. Currently, whether the $0.0788 resistance level is broken is presented as a key variable to determine the sustainability of the rebound.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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