PI crypto’s price pullback tests bulls – Is $0.113 still on the cards?
The PI crypto price breakout beyond $0.10 last week was likely spurred by the Protocol 26 upgrade on the Mainnet.
Pi Network [PI] crypto token continued to trade above the key short-term support zone at $0.085. On Saturday, the 22nd of August, the token raced higher to $0.11, before slumping 18% from the day’s peak to close the daily session at $0.09.
The swift gains likely came as a result of the Pi Network announcement revealing the completion of the Protocol 26 upgrade on Pi Mainnet. A sharp move higher, followed by rapid profit-taking, did not bode well for the token’s bullish chances.
PI’s foray above $0.10 faces stern rejection
It was a bit difficult for the bulls to square this outcome. They succeeded in driving prices past $0.10, a key round-number level that has been a supply zone since July. However, this rally turned out to be only a few hours long.
Notably, the retracement swept the $0.085 support zone and has climbed back to $0.09 over the past week.
The technical indicators were flat. PI‘s OBV lacked a trend over the past six weeks, and the MACD has recovered from deeply bearish momentum to more neutral conditions, but was still not bullish.
Moreover, the prevalent swing structure on the daily timeframe was bearish. The Fibonacci retracement levels plotted the $0.113-$0.124 as the key resistance that could trigger a bearish trend continuation.
PI crypto traders must watch THIS range
The 4-hour chart showed a range formation (purple) between $0.084-$0.093. The lower band of the range coincided well with the short-term demand zone around $0.085.
This support zone was defended, keeping bullish near-term hopes alive. On this timeframe too, however, the technical indicators showed indecisiveness between bears and bulls.
A breakout past the $0.093 range high with strong buying volume could see a price move toward $0.113. Swing traders must remember that the higher timeframe price swing structure remained bearish.
Final Summary
- The PI crypto price breakout beyond $0.10 last week was likely spurred by the Protocol 26 upgrade on the Mainnet.
- This move was used to take profits, making it even more difficult to argue the bullish case for the PI token in the coming weeks.
