Pi Network’s native token, PI, extended its weekly gains to over 9% due to a recent node upgrade.
On Friday, the project confirmed that the majority of the mainnet node operators had successfully upgraded to the new Protocol v25 version. It urged the rest of the remaining operators to upgrade their systems as soon as possible.
The node upgrade follows another network upgrade earlier this year, designed to make it more decentralized.
Can PI clear the June sell wall?
Traders treated the update as a bullish catalyst, as PI price climbed higher towards to $0.14, extending its weekly rebound by 9%.
Unfortunately, the $0.14 zone has acted as a key short-term sell wall (red) in June. In fact, as of press time, there was an upside candlestick wick (on the 12-hour chart), suggesting that sellers (bears) were already active at the sell wall.
If sellers continue to pile at the zone, then the sell wall could derail bulls once again from pushing forward.
Perhaps, a further confirmation of a pullback could be evidenced by the MACD death cross. As of writing, such a bearish signal couldn’t be overruled, especially if BTC slips lower towards $60K.
On the contrary, a sustained relief rally for Bitcoin [BTC] towards $66K could invalidate the above thesis. Such a scenario would embolden bulls to crack the $0.14 ceiling, raising the odds for a further surge to $0.15 and $0.155.
Market sentiment drops to neutral
Notably, during the network upgrade, the market sentiment around the token briefly flipped positive. This coincided with the rally seen in the past two days. However, as of writing, market sentiment dropped to negative before easing near the neutral level.
This meant the price could go either direction. Hence, the next direction may largely be influenced by BTC’s next direction if there is no other ecosystem positive update in the near term.
Overall, PI reversed earlier weekly losses and posted a 9% recovery gain. However, the rally hit a familiar sell wall that may attract short sellers. If so, a price rejection at $0.14 could drag PI to $0.13 or lower.
Final Summary
- The PI Network node upgrade became a bullish catalyst and lifted the altcoin by 9%.
- Market sentiment flipped neutral, suggesting the next PI price direction could be determined by BTC.