Pi Network (PI) has witnessed an explosive 70% rally in the past 24 hours, pushing its market capitalization to $16 billion while its trading volume surpassed $3 billion. The cryptocurrency has reached a new all-time high (ATH) near $3, sparking speculation about whether it can continue its ascent toward $4 or face a correction.
Despite the bullish momentum, technical indicators show mixed signals, suggesting that while the rally remains strong, the token might be overextended and due for a pullback.
Pi Network’s Uptrend Gains Strength, ADX Hits 57.7
According to market data, Pi Network’s Directional Movement Index (DMI) has confirmed an exceptionally strong uptrend. The Average Directional Index (ADX) surged from 12.3 to 57.7, a sign that the ongoing price movement is robust.
- The Positive Directional Indicator (+DI) climbed from 14.6 to 40.9, signaling strong buying pressure.
- The Negative Directional Indicator (-DI) dropped to 1.1 from 19.4, indicating minimal selling resistance.
With this setup, Pi Network appears to be in a dominant bullish trend. If this momentum holds, the price could continue rising in the near term.
Technical Indicators Flash Caution as BBTrend Declines
Despite the uptrend, the Bollinger Bands Trend (BBTrend) indicator has dropped to -11, marking a sharp decline from its previous reading of 51.2 three days ago.
A negative BBTrend often indicates that an asset has risen too quickly and may be due for a correction. If Pi Network follows this pattern, it could see a pullback toward $1.7 or even $0.79 before regaining strength.
Will Pi Network Reach $4 in March?
With strong trading activity and bullish sentiment, Pi Network could attempt to break the $3.5 resistance level and push toward $4 in the coming weeks.
However, traders are closely monitoring the possibility of a price correction. If the current rally loses steam, PI could fall back to key support levels at $1.7 or even lower.
Market Outlook: Further Gains or Imminent Correction?
Pi Network’s surge highlights growing market interest, but its technical indicators suggest a period of consolidation or correction may be ahead.
- Bullish Scenario: PI breaks above $3.5, paving the way for a push toward $4.
- Bearish Scenario: A price retracement occurs, testing support at $1.7 and $0.79.
- Market Sentiment: With a trading volume exceeding $3 billion, PI remains one of the most actively traded cryptocurrencies, but traders should exercise caution.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are volatile—always conduct your own research before investing.
