The Pi Network (PI) has shown signs of recovery, inching up by nearly 1% as of Wednesday, reflecting a growing interest among retail investors. Following a modest gain of 0.40% the previous day, this uptick suggests a potential rebound from the recent low of $0.20.
Data from Santiment indicates a significant increase in Pi Network’s social dominance, which tracks the frequency of discussions about PI within the crypto community. On Wednesday, this metric rose to 0.086%, a substantial increase from 0.008% just a day prior. This surge in social interest appears to signal a renewed anticipation for a price rebound as the New Year approaches.
Technical Outlook Suggests Potential Gains
The technical analysis of Pi Network’s performance presents an optimistic outlook. Currently, PI trades above the critical support level of $0.20, despite previous attempts to rebound having fallen short. If the current momentum continues, the formation of a Morning Star pattern, alongside the recent Doji candle, could pave the way for an increase toward the 50-day Exponential Moving Average at approximately $0.2191.
Market indicators display mixed signals. The Relative Strength Index (RSI) sits at 41, indicating a neutral to slightly bearish sentiment. Conversely, the Moving Average Convergence Divergence (MACD) shows a gradual rise in bullish momentum, supported by increasing green histogram bars.
Trading volumes have fluctuated significantly throughout December. While the daily trading volume remained above 7 million PI tokens, it has seen a decline to 8.58 million PI on Wednesday, down from 38.65 million PI on December 1. This decline in trading volume may affect the token’s ability to maintain upward momentum.
Potential Risks Ahead
Investors remain cautious as Pi Network must maintain its position above the October 11 low of $0.1919 to avoid further declines. A drop below this threshold could lead to testing the S2 Pivot Point at $0.1593.
As the New Year approaches, the market will be watching closely to see if the increased social interest translates into sustained price recovery for Pi Network. The combination of a favorable technical outlook and heightened retail engagement may create a conducive environment for the token’s resurgence.
For those monitoring the cryptocurrency landscape, the developments surrounding Pi Network signal a moment of potential opportunity, contingent on market dynamics and investor sentiment as 2024 unfolds.