The Pi Network [PI] token has lacked a prevalent trend recently. Its 24-hour gains and 1-week gains were 0.12% and 0.39%, respectively, at the time of writing.
This price action coincided with Bitcoin [BTC] oscillating between $85k and $90k.
Moreover, the lack of a strong trend in the PI price action was not due to a network with little development activity and user growth. In recent months, some notable events have taken place.
The Fast Track KYC feature, introduced in September, made Pi’s standard KYC faster by integrating AI in its validation process.
In fact, Pi2Day celebration included an announcement for two new ecosystem features and various tech and product updates. The December hackathon’s winners were announced, with first place going to Blind Lounge, a privacy-first dating and social platform.
They were not enough to kickstart PI into a sustained uptrend. The technicals did not show long-term bullish strength.
Since late November, PI has been in a downtrend. The previously bullish internal structure in November was completely retraced. The $0.215 level had been a support in the first half of the month, but it hardly posed any obstacle to the sellers on the way down.
The rally from the 16th to the 19th of December spanned from a swing low at $0.192 to $0.218. The failure to reclaim the $0.215 zone as support during this rally showed the seller dominance.
The moving averages (20DMA at $0.205 and 50DMA at $0.221) on the daily chart were likely to serve as resistance to PI. The structure remained bearish, and a move beyond $0.218 is necessary to shift it bullishly.
Additionally, OBV has been flat over the past two weeks, reflecting slow demand. Unless this changes, the bullish scenario would be unlikely.
This plan is relatively simple. Wait for a breakout past $0.218 and retest as support to go long, provided there’s increased buying pressure. Positive momentum for Bitcoin [BTC] would also help the bullish PI case.
Traders can also wait for the price to break down below the $0.2 local support to go short. This would align with the longer-term trend. The bearish scenario’s price targets would be $0.191 and $0.185.
