Pi coin price looks poised to break out of a falling channel after it formed a bullish MACD crossover on the daily chart. Is the token set to soar this week?
Summary
- Pi coin price was up 40% on Monday.
- The token is testing a breakout from a falling channel, which could lead to a potential 67% upside in the short term.
According to data from crypto.news Pi Network (PI) went parabolic on Monday, Oct. 27, surging by nearly 40% over the past 24 hours to a monthly high of $0.289 before parting with some of its gains and settling at $0.270
While no specific immediate catalyst could be tied to the move, the rally appears to have been largely fueled by investor speculation around project-related developments, and as of press time, Pi coin price was close to confirming a potential bullish breakout from a falling channel that has been developing on the daily chart.
For those unfamiliar, a falling channel is a pattern formed when an asset’s price moves lower within a set of parallel, downward-sloping trendlines. A breakout above the upper trendline typically signals a bullish reversal, especially when backed by rising volume and confirmation from other indicators.
As of press time, PI coin price was trading slightly above the breakout level at $0.261, hinting that the market may be in the early stages of validating the breakout.
Zooming in on other technical indicators, the MACD and signal line are in a steady upward trend after confirming a bullish crossover, reinforcing the case for growing bullish momentum. The Awesome Oscillator has also turned green, suggesting a shift in momentum in favor of the bulls.
Meanwhile, the Relative Strength Index had risen to 66 in the past 24 hours, indicating that buying pressure is building, but the token is yet to hit overbought levels.
As such, a decisive breakout from $0.261 with building trading volume could lead to a rally as high as $0.445, a target calculated by adding the width of the falling channel to the price at which the token broke out from the upper side of the pattern. The calculated target lies 67% above the current price level.
On the downside, the key support remains at $0.172, the low from Oct. 11, which traders will likely watch closely in case of a failed breakout or sudden pullback.
However, investors watching Pi coin should note that similar rallies in the past, fueled by project-specific developments, have failed to sustain and were followed by steep corrections on multiple occasions once the initial hype faded.
Back in May, for example, the team teased a major announcement that was supposedly just weeks away, and PI skyrocketed by triple digits within days. But the rally didn’t last. The price hit a wall around $1.70, and what followed was an even harsher rejection, dragging the token even below its launch price.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
