Pi Network has sent its first bullish signal since 1/7 – Has the upward trend started?

Supporters of Pi Network (PI) seem to be returning, thanks to the improved market sentiment over the past 24 hours. The price of this token has increased by 6.7% in the past 24 hours, raising speculations about the possibility of entering a new bullish phase.

Buying pressure for PI is bullish

The 6.7% increase of PI has triggered a bullish crossover signal on the MACD indicator. Specifically, the green MACD line of this token has just crossed above the orange signal line for the first time since July 1, indicating that the upward momentum is strengthening.

The MACD indicator is used to identify trends and momentum in price movements. It helps traders detect potential buy or sell signals through the crossings between the MACD line and the signal line.

The MACD of PI | Source: TradingViewSimilar to PI, when the MACD line crosses above the signal line, it indicates that a bullish momentum is forming, implying that buying activity is increasing. Traders often view this setup as a buy signal, which can create additional bullish pressure.

Although both the MACD line and the signal line of PI remain below the 0 level due to the prolonged downtrend, this crossover indicates that selling pressure is easing as the bulls attempt to regain control of the market.

In addition, data from the daily PI chart shows that the Balance of Power indicator (BoP) reached a level of 0.61 – reflecting a significant increase in buying pressure.

PI BoP | Source: TradingViewThe Balance of Power indicator (BoP) measures the relative strength between buyers and sellers in the market, helping to identify changes in momentum. When this index has a negative value, it indicates that the selling side is dominant, with little or no resistance from buyers.

Conversely, the current positive BoP values indicate that the buyers are overwhelming the sellers and driving new bullish levels.

Can buying pressure help PI break through?

Currently, PI has surpassed the resistance zone at $0.477 and is trading at $0.501. If demand continues to increase, this altcoin may soon reach its next target at $0.508.

However, for PI to maintain this bullish trend and move up to higher resistance levels, there needs to be a sufficiently large new demand to absorb the current supply.

Price analysis of PI | Source: TradingViewIf there is no additional buying pressure, this recovery will quickly lose momentum. In that case, PI risks returning to the previous accumulation zone — or worse, falling to the support level of 0.445 dollars.

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