Pi Network (PI) is having difficulty returning to $1

Pi Network (PI) is showing signs of stability after a month of volatility, with a 4.7% increase in the past week. However, this cryptocurrency is still in the process of recovering from a significant 31.5% correction over the past 30 days.

Some technical indicators, such as DMI, indicate that trend strength is increasing. Meanwhile, other indicators like CMF and EMA still reflect the existing bearish pressure. Currently, as buyers and sellers are in a tug of war, the next direction of PI may depend on whether key support or resistance levels are broken.

PI DMI shows strong bullish momentum, but the upward trend is cooling down

The Directional Movement Index (DMI) of PI shows that the ADX (Average Directional Index) has increased to 17.17 from a level of 12.24 just yesterday.

This increase signals that the trend strength is beginning to form, although it remains below the threshold of 20 typically used to identify the start of a strong trend.

ADX not only indicates the direction but also represents the strength of the current trend; therefore, an increasing ADX, even at lower levels, is often a sign that market momentum may be increasing.

! Mixed dynamics slow Pi Network's $1 rally (PI) PI's DMI | Source: Tradingview Looking deeper into the components of DMI, the +DI index (Chỉ the positive direction cực) is now at 25.36, up from 18.22 yesterday, although it cooled down from a high of 33.2 just a few hours ago. Meanwhile, the -DI (Chỉ forecast a cực) target of 18.55, down from 21.89 yesterday but still higher than the previous low of 12.89.

This change indicates that upward price pressure remains dominant, but part of the buying momentum has decreased recently, while sellers are attempting to make a comeback. If +DI stays above -DI and ADX continues to rise, PI could maintain an upward trend. Conversely, if the trend weakens and -DI increases further, the price may enter a correction or volatility phase.

PI CMF slips back below 0, signaling caution

The Chaikin Money Flow index (CMF) of Pi Network is currently at -0.06, having recovered from -0.09 to a neutral level (0) earlier in the day and then decreasing again over the past few hours. The reversal on this day may indicate a weakening of buying pressure after a short accumulation.

CMF measures the flow of money in and out of an asset over a specific period, combining price and volume data to assess whether buyers or sellers are in control.

CMF of PI | Source: TradingView. With the CMF of PI at -0.06, the current index leans towards the downside, indicating that sellers currently have more influence than buyers. The attempt to push into positive territory failed, followed by a decline, which may reflect hesitation from buyers and weak price potential in the short term. However, if the CMF stabilizes and turns positive, it could support the continuation of upward momentum.

PI EMA is still declining as key supports emerge

The exponential moving averages (EMA) of Pi Network are still in a bearish structure, with the short-term averages below the long-term averages.

This setup often reflects continuous downward price pressure and a lack of strong upward momentum. If the support at $0.617 is challenged and does not hold, the price of PI could slide down to $0.59. If this level is also broken and a strong downward trend ensues, the next important support is $0.547, a level that could serve as a deeper floor if selling continues.

Price analysis of PI | Source: TradingViewConversely, a reversal and the establishment of a sustainable uptrend could change the outlook. If PI has enough strength to test and break through resistance at $0.789, the next upward target will be $0.85. A confirmed breakout above that level could pave the way towards $1.04, marking the first time the price trades above $1 since March 23.

You can view the details of the PI price.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making any decisions. We are not responsible for your investment decisions.

Mr. Teacher