- The selling pressure behind PI was strong, despite the price bounce in April.
- A bullish divergence on the 4-hour MFI after a retest of nearby support levels could be interesting to buyers.
Pi Network [PI] has been in a steady downtrend in recent weeks. Although it still retained its bearish outlook, the downward momentum has eased in April.
Could this be a reprieve, or were the PI bulls building up toward a breakout past the key overhead resistance?
The chances of a Pi uptrend are slim, as of now
Source: PI/USDT on TradingView
On the 1-day chart, the relevant lower high and lower low were marked in orange. These levels at $0.84 and $0.52 marked the places where the next market structure break would occur.
A move beyond either level would signal where the price of PI is headed next.
The technical indicators on the 1-day timeframe appeared to have stabilized. The MFI, which had been deep in the oversold territory, has climbed toward overbought.
This shift over the past two months signaled bullish capital flow and momentum.
However, the A/D indicator has not stopped its downward progress, although it slowed down in April.
This was a sign that buying volume was still low and that the findings from the MFI were not wholly representative of the PI situation.
Source: PI/USDT on TradingView
Zooming into the 4-hour timeframe, a set of Fibonacci retracement levels was plotted based on the sharp price bounce on Saturday the 5th of April.
At press time, the price of the Pi Network token was headed to the 50% retracement level at $0.595.
The MFI was below 50 on the H4 timeframe. It was at 23, barely above the oversold region, showing bearish momentum and selling pressure. The A/D indicator also took a few steps downward over the past two days.
This came alongside the bearish market structure break, when PI bears drove the price below $0.71 (green). In the coming days, the $0.595 and $0.55 levels were likely to act as support.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
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