Pi Network Price Forms a Double Bottom: Is a Relief Rally on the Horizon?

Summary:
Pi Network (PI) is displaying promising technical signals with the formation of a double bottom at the $0.21 support level. Increased buying pressure has sustained this support, and a breakout above $0.23 could lead to a price rally toward $0.25.

Key Takeaways

Pi Network has created a double bottom at $0.21, indicating strong support.
Increased bullish volume suggests sustained demand at lower levels.
A rally to $0.25 could occur if the price breaks above $0.23.
Failing to maintain above $0.21 could expose lower price levels.

Pi Network price established potential double bottom for a reversal back up.

Technical Analysis of Pi Network's Price Action

Pi Network price forms double bottom: Relief rally next? - 1
PIUSDT (4H) Chart, Source: TradingView

Pi Network's recent price movements have significant technical implications, as the asset has confirmed a double bottom at the crucial support level of $0.21. This support has held firm on two separate occasions, accompanied by rising bullish volume, which indicates ongoing demand despite lower prices. As the price starts to reclaim short-term resistance areas, traders are closely monitoring whether Pi Network will transition from an accumulation phase into a relief rally aimed at higher price points.

Key Technical Levels for Pi Network

The price action observed has demonstrated early indications of structural strength, particularly as multiple attempts to fall below $0.21 were met with resistance. With both retests at this level seeing increasing volume, this behavior suggests that buyers are actively defending it rather than just stabilizing the price due to a lack of selling activity. This development positions $0.21 as a significant structural support area, and as long as the price remains above it, demand is likely to persist.

The next significant target for traders is at the swing high of $0.23. This level has acted as resistance following the recent upward correction and signifies the neckline of the double-bottom pattern. A decisive close above this point, ideally supported by higher trading volume, would not only validate the bullish pattern but also suggest further upward movement.

From a technical standpoint, any sustained trading above $0.22 reinforces the bullish outlook for Pi Network. When exceeding this level, the chances of price movement toward the $0.25 resistance zone rise significantly. The $0.25 mark not only represents a critical psychological level but also aligns with a historical area of selling pressure. Achieving this price point would mark a 15% to 18% relief rally from the current support level.

It is important to note that the double bottom formation is still in progress, and confirmation will only occur when the neckline is decisively broken. However, the successful defense of support during two tests provides compelling evidence of accumulation at these lower price points. This behavior mirrors previous trends observed during earlier relief rallies in Pi Network's trading history, where price stabilization followed by increased volume often led to significant upward expansion.

Outlook for Future Price Action

If Pi Network can maintain its strength above the $0.22 mark and break through the $0.23 resistance with significant trading volume, this will solidify the double-bottom pattern and open the pathway for a likely move toward $0.25. Conversely, if the price fails to remain above the $0.21 level, it could invalidate the bullish structure and expose the market to lower liquidity zones.