Date: Fri, March 21, 2025 | 04:10 PM GMT
In the cryptocurrency market, Pi Network (PI) has caught traders’ attention with a strong bounce after a sharp correction throughout the day. The token dropped to a 24-hour low of $0.86 before rebounding to its current price of $1.08, suggesting that buyers are stepping in at a critical level.
Bounce Off Key Support
The key driver behind this pump is that PI has rebounded from the lower support trendline of a falling wedge pattern on the 4-hour chart. This bullish reversal formation typically signals a potential breakout if key resistance levels are breached.
Since hitting its peak of $3.00 on February 26, PI has been in a persistent downtrend, shedding over 70% of its value. Today’s price action saw PI testing the lower support of the wedge at $0.86, where it managed to make a strong recovery, signaling that this level is being actively defended by buyers.
Currently, PI is bounced back to $1.08 and closing on the upper resistance trendline of the wedge, as well as testing its 20-day moving average (MA) (marked in the chart’s highlighted circle). If the price breaks out of the wedge and confirms a retest, it could mark the beginning of a recovery rally targeting key resistance zones at $1.21, $1.51, and $1.79—a potential 66% increase from the current price.
However, if PI fails to break out, another retest of the wedge support could be expected, potentially leading to further consolidation before the next decisive move.
Final Thoughts
With PI rebounding from a key technical level, the coming days will be crucial in determining whether it can confirm a breakout and begin a sustained recovery. Traders should closely monitor price action around the resistance trendline and 20-day MA for confirmation of a potential bullish reversal.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before investing in cryptocurrencies.