- Pi coin price spiked 48% in 10 days since July 15 but failed to confirm a bullish pattern.
- However, the cues behind the rally remained unclear.
NEW DELHI (CoinChapter.com) — Blockchain platform Pi Network’s token price rallied nearly 48% since July 15 to reach $28.4 on July 24. The rally helped the PI coin price reach its highest level since May 1, earlier this year.
However, the rally fizzled out after reaching the upper trendline of a bullish technical pattern called the ‘Ascending Triangle‘ that the Pi Network coin price has formed.
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows forms an ascending triangle pattern. Volume helps determine if a breakout is strong.
Under ideal conditions, buyers would enter the market as the trendlines close the gap. As a result, the toke’s price would push above the horizontal resistance with heavy volumes.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. Had the triangle pattern panned out, the Pi coin price had a theoretical price target of $36.3, a spike of over 45% from current levels.
Unfortunately, a low-volume breakout on the upside will likely fail, resulting in a pullback, which is likely what happened to the Pi Network token.
Pi Network Mainnet Launch Delay Hampers Price Growth
The platform’s failure to introduce new updates has adversely hit Pi coin price action.
Moreover, the lack of any news regarding the Pi Network open mainnet launch has also put the brakes on Pi coin’s price action. In Feb 2023, Pi Network founder Dr. Nikolas Kokkalis shared that a proper KYC system was the only hindrance to the Pi Network open mainnet.
Meanwhile, the platform added a testnet ecosystem interface for Pioneers to test dApps on Pi Network. Despite several dApps, such as ‘Pi Chain Mall, ”Voice of Pi,’ etc., launching on the Pi Network’s testnet, the Pi crypto token price remained mostly flat before the rally beginning July 15.
Interestingly, the cues that fueled Pi Network token’s recent rally remained unclear, suggesting the price spike was likely due to investors buying the dip.
Pi Coin Fails To Clear EMA Resistance
The Pi network token’s 100-day EMA (blue wave) resistance near $27.4, combined with the ascending triangle’s upper trendline, rebuffed Pi coin’s price rally. As a result, Pi coin price dropped nearly 13% since July 24 to form a daily low near $24.8 on July 28.
However, if Pi coin price flips the immediate resistance, the Pi Network token price might target the resistance near $29.5 before corrections pare gains.
Conversely, if the downtrend continues, Pi coin price might drop to the 20-day EMA (red wave) and 50-day EMA (purple wave) support confluence near $25. Moreover, failure of the immediate support level could force Pi coin price to test the support near $22 before recovering.
The RSI for Pi coin remained neutral, with a value of 56.95 on the daily charts.