The price of Pi Network (PI) is displaying signs of indecision as it hovers just above a critical support level at $0.601, raising questions about whether the next move will be a breakdown or recovery. Over the past seven days, PI is down nearly 6%, but technical indicators are showing a potential shift in momentum.
Directional Momentum Weakens, Trend at a Crossroads
According to technical data, Pi Network’s Directional Movement Index (DMI) is signaling fading bearish momentum. The Average Directional Index (ADX) — which tracks trend strength — has dropped to 34, down from 44.59 a day earlier. This drop follows a sharp climb from 16.89 just three days ago, indicating a short-lived but weakening trend phase.
More importantly, the +DI (positive directional index) has climbed to 20.89, up from just 4 two days ago, suggesting that bullish sentiment is slowly building. Conversely, the -DI (negative directional index) has dropped sharply to 32.68, after peaking at 70.57, further indicating that bearish pressure is easing.
This crossover between bullish and bearish momentum suggests a potential trend reversal or, at the very least, a neutral phase following intense selling.
CMF Indicator Signals Mild Buying Pressure
The Chaikin Money Flow (CMF), which measures the flow of capital based on price and volume, sits at 0.07, down from 0.19 two days ago but still in positive territory. A CMF value above zero generally indicates buying pressure, even if modest.
While not strong enough to confirm accumulation, this level suggests that capital is still entering the asset, albeit with reduced intensity. A further drop below zero would warn of weakening demand, while a rise back toward 0.10 could signal strengthening interest.
EMA Lines Indicate Consolidation
Pi Network’s Exponential Moving Averages (EMAs) indicate that the asset is currently in a consolidation phase, with the price tightly ranging above $0.601. This follows a rebound from earlier lows caused by geopolitical tensions, specifically the Israel-Iran conflict escalation.
This zone is seen as make-or-break territory. A breakdown below $0.601 could trigger a deeper decline toward $0.542 and even $0.40 if bearish momentum regains traction. On the flip side, a breakout above resistance levels at $0.647 and $0.658 could set off a bullish wave toward $0.796.
With conflicting signals from technical indicators, traders are advised to monitor these levels closely before taking positions.
Conclusion: Traders Await a Decisive Move
Pi Network remains in a critical phase, with mixed signals across key metrics. While the DMI and CMF show signs of improving sentiment, the market hasn’t yet committed to a clear direction. Holding the $0.601 support is crucial in determining whether the PI price will recover or break lower.
Investors should watch for a strong move past resistance or a decisive drop below support, which could define Pi Network’s short-term price trajectory.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
