Pi price has finally reached a key support level at around $0.62 to $0.68, just as we have been predicting. We expect some bullish reactions here.
Yesterday, Pi coin was unable to close below this key support line, making the price bounce back to $0.72 at the time of writing. This could be seen as a positive sign, as the bulls managed to defend the crucial support level.
However, breaking below this line, especially on the daily chart, could indicate a strong continuation of the bearish trend. But what are the chances of this occurring? Let’s look at two indicators to determine this.
What you'll learn 👉
Fibonacci Retracement
The price has fallen below every key Fibonacci level since its last swing high on the daily chart. The current support at around $0.62 to $0.68 is also aligning with Fibonacci retracement level 1 (0.6410).
This level strengthens the support, and we could easily witness some buying activity at this price today. However, the negative sentiment surrounding the token may discourage more buyers from entering; thus, the buying momentum could be low.
Relative Strength Index
The relative strength index (RSI) in the market is showing rather mixed signals. On the four-hour chart, the RSI line is crossing above the RSI-based moving average line, indicating a bounce above 30 and a shift in momentum from bearish to bullish. This suggests that we could see some minor bullish activity in the mid-term.
However, on the daily chart, the RSI line and the RSI-based moving average line are displaying a strongly parallel pattern that resembles a downward-facing parallel line. A value around 38 also suggests that the price may experience movement before becoming overbought.
What to Expect Today
Today, we expect the key support zone we have identified to be crucial for Pi price. For now, we may observe some minor buying momentum. However, we cannot determine how significant this will be, as buyer behavior in this key area will influence the mid-term direction. So far, the general crypto market appears somewhat weak, and we may not anticipate anything very positive from Pi
Read Also: Elite Analyst Warns Bitcoin Holders: ‘Little to No Support’ Until $70k
Conversely, if the price eventually closes below the key support — likely not today — more traders could lose interest in the coin. This could also trigger a significant number of stop losses, leading to further decline. Unless the market situation becomes significantly more critical, we do not expect this to happen today. For now, we hope to see a struggle at the key support between buyers and sellers.
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