Pi Network price continues to consolidate near key support, with price action pressing into critical levels that could determine the fate of its extended downtrend. Traders are eyeing signs of potential accumulation for a reversal.
Summary
- Pi Network is testing the $0.33 support, with a potential triple bottom forming if the level holds.
- A reclaim of the point of control could trigger a rally toward $0.85.
- Strong bullish volume influxes are needed to confirm accumulation and reverse the extended downtrend.
Pi Network (Pi) has been locked in a downtrend for an extended period, defined by consecutive lower highs and lower lows. Pi Network has communicated several bullish updates lately, including the Stellar protocol 23 upgrade but investors aren’t showing overt bullish intentions.
Moving averages have compressed price action to the downside, reinforcing bearish market structure. However, the asset now sits at a pivotal level that could spark a shift in momentum. A successful defense here opens the door for accumulation and eventual recovery, while a breakdown could extend the decline further.
Key Pi Network price technical points
- Key Support at $0.33: Holding this level may establish a potential triple bottom and form an accumulation zone.
- Point of Control Backtest: Price has retested but failed to reclaim POC, leaving bearish structure intact.
- Upside Target at $0.85: Breaching the point of control could accelerate a rally toward major downtrend resistance.
Pi Network has respected its bearish trajectory, with the moving average repeatedly capping attempts at recovery and compressing price lower. The breakdown through the point of control and subsequent rotation toward the value area low reinforced the strength of the downtrend. While a short-term bounce occurred, the backtest of the POC failed to invalidate bearish market structure, keeping the broader trend tilted to the downside.
Price action is once again testing the swing low region near $0.33, which has become a critical support. Should Pi manage to defend this level for a third time, the setup for a potential triple bottom becomes viable. This formation often acts as a powerful base for longer-term reversals, particularly if accumulation develops within a defined range.
If such an accumulation phase occurs between $0.33 and the point of control, the probability of a trend reversal increases significantly. A reclaim of the point of control would then serve as the trigger for bullish continuation, with the next upside objective aligning with the $0.85 high downtrend resistance. From a market auction perspective, reclaiming the POC after defending the value area low typically allows price action to rotate back toward the value area high, but this has yet to materialize.
Volume dynamics add another layer of importance to this zone. At present, the volume nodes have shown limited bullish influxes, signaling that demand has not yet meaningfully stepped in. For any reversal to be confirmed, strong and sustained bullish volume must enter the market. If this occurs while the swing low remains intact, it would greatly increase the odds of a breakout from the extended downtrend.
What to expect in the coming price action
Pi Network is trading at a critical juncture. If the $0.33 support holds and accumulation develops, a triple bottom formation could set the stage for a rally back toward the point of control and beyond. Failure to defend this level, however, increases the likelihood of further downside and continuation of the extended bearish trend.