PI Network (PI) has skyrocketed over 70% in the last 24 hours, increasing its market capitalization to $16 billion and more than $2.3 billion in the last 24 hours.
Despite reaching an all-time high of nearly $3, this technical divergence suggests a volatile path before the PI. The token is looking carefully as it navigates between the bullish momentum that the token could drive towards $4 and the warning signs that could trigger a pullback to support a low level of $1.7 or a level of $0.79.
PI Network DMI shows that uptrends are very strong
The Directional Motion Index (DMI) of the PI Network shows a noticeable momentum with a surge in average directional index (ADX) from just 12.3 a day ago to 57.7.
ADX is an important technical indicator that measures the intensity of a trend, regardless of the direction. Measurements below 20 generally show a weaker trend, 20-40 suggests a moderate trend, and values above 40 indicate a strong trend.
This dramatic increase from weak regions of ADX to very strong regions of Pi shows a significant enhancement in the strength of the underlying trend.
Complementing this ADX surge, the positive directional indicator (+DI) of the PI rose sharply from 14.6 to 40.9 from two days ago, while the negative directional indicator (-DI) fell sharply from 19.4 to 1.1 over the same period.
As with the current PI, if +DI is significantly higher than -DI, a strong bullish trend is confirmed. The combination of high ADX values and wide spreads between +DI and -DI suggests that PI networks are experiencing particularly strong uptrends with minimal sales pressure.
If these technical signals maintain their current configuration, the market appears to be under strong purchase control with minimal resistance, allowing them to show a continuous movement of PI rising prices in the short term.
Pi Bbtrend is negative despite price surges
Despite the continued price surge, Pi's Bollinger Bands Trend Indicator (BBTREND) plunged to -11, showing a dramatic decline from a 51.2 read just three days ago, after hovering between 1 and 3 yesterday.
The BBTREND indicator is a specialized technical tool that measures price movement compared to Bollinger bands. This essentially quantifies how prices tend to be within these volatility-based channels.
Positive measurements indicate upward price movement compared to bands, while negative values indicate downward movement and recovery to the central band.
This sharp decline to -11 in PI's BBTREND may indicate that the current uptrend has been significantly over-expanded and potentially vulnerable to the correction or integration phase.
When BBTREND becomes particularly negative after a price surge, assets are often too fast and moved, and traded at unsustainable levels in the short term.
This technical warning sign suggests that the PI may experience a pullback to the central bollinger band, period of lateral integration, or at least slowing its upward momentum.
Can PI networks reach $4 in March?
PI Network prices reached an all-time high just hours ago, as prices approached the $3 mark for the first time.
This strong upward momentum could keep the PI up, breaking through the $3 psychological barrier and testing resistance levels at $3.5, or even $4, in the short term.
This impressive rally shows that if positive emotions persist, it will buy market interest and purchasing pressures that could raise even more.
However, as indicated by negative BBTREND readings, this assembly may be over-expanded and at risk of inversion. If the downward technical signal was embodied in price action, the PI experienced a substantial fix and initially fell to test support for $1.7.
If this level is not maintained, it is likely to drop further to $1.42 as sales pressure increases.
In a scenario where a strong drop is entrenched, the price of the PI could experience an even more dramatic pullback to $0.79.
Disclaimer
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