A potential altcoin season could catalyze the next bullish run in the PI token.
Pi Network (PI) is holding at $0.40 at press time on Thursday, extending the consolidation range seen in the past few days within a larger falling channel pattern. PI token bulls eye the next leg higher as the selling pressure fades, potentially leading to a channel breakout.
As the broader cryptocurrency market reaches a record high of $4.15 trillion, rising risk-on sentiment and the potential for an altcoin season could act as additional catalysts for PI.
CoinMarketCap data shows that investor greed, on a scale of 0 to 100, is at 68, up from 63 on Wednesday. This heightened greed correlates with the return of risk-on sentiment among investors, fueling capital inflows and driving Bitcoin (BTC) and other top altcoins to reach all-time highs.
Additionally, the Altcoin Season Index is at 41, up from last week’s 39 and last month’s 32, indicating increasing chances of a potential altcoin season. In the next potential altseason, Pi Network could experience increased capital inflow as the capital rotates from Bitcoin and other top altcoins toward riskier and more volatile cryptocurrencies such as PI.
The PI token holds steady near the $0.40 level, extending the muted sideways price action after the sharp 9.32% drop on Sunday. PI token’s reversal marks a negative cycle within a falling channel as it fell from the overhead trendline formed by connecting the highs of May 21 and June 25.
A trendline connected by the lows of May 17 and June 22 forms the lower boundary of the falling channel pattern. To reinforce a trend reversal, PI should surpass the overhead trendline, which is near the declining 50-day Exponential Moving Average (EMA) at $0.45.
The Moving Average Convergence Divergence (MACD) trend is upward, indicating rising bullish momentum. Still, the Relative Strength Index (RSI) reads 47 on the daily chart, as it moves flat below the halfway line. This indicates the fading selling pressure near the neutral level, but also a lack of buying pressure.
Looking down, an extended correction in Pi Network could test the $0.37 support zone, followed by the $0.33 level marked by the low from August 6.
