Let’s examine the insights shared by our Technical Analyst at UseTheBitcoin as he walks us through his personal trading approach and observations on the crypto market.
Pi Network (PI) Breaks Above Downtrend – What’s Next?
Pi Network has finally broken above its downtrend pattern on the 4-hour timeframe. While this signals a potential bullish movement, those looking to enter a position should be cautious. The price is currently testing a key resistance zone between $1.65 to $1.95, which could act as a barrier to further upside.
Understanding Resistance And Support
For those new to crypto, resistance is a price level where selling pressure tends to be strong, making it difficult for an asset to move higher. When an asset reaches resistance, it has two possible outcomes: breaking above it and continuing the uptrend or getting rejected and pulling back to find support.
The closest support level for Pi Network is around $1.50. If the price retraces, this level may act as a solid base where buyers could step in, increasing the chances of a bounce. If you’re planning to enter a position, it’s ideal to buy near support levels rather than at resistance.
What If Pi Network Breaks Above Resistance?
The $1.65 to $1.95 resistance zone is crucial. If Pi Network successfully breaks and holds above this range, we could see a strong move toward $3 or even higher. A confirmed breakout with volume could mean a continuation of bullish momentum.
Fibonacci Golden Ratio And Market Factors
Looking at the Fibonacci retracement, Pi Network is currently sitting at the golden ratio, a level that often acts as a pivot point for price action. If Pi remains within this range, the chances of a strong bounce increase.
Final Thoughts
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