Wealthy Investors Propel Pi Network Beyond $0.27 – Will Retail Followers Keep Up?

Pi Network breaks out of consolidation — Can it sustain the rally above $0.27?

Key Takeaways

A trio of factors including whale activity, increased trading volume, and bullish futures positions drove Pi's significant price breakout.
Maintaining a price above $0.27 is essential; ongoing buy-side strength could push the price toward the $0.36 resistance level.
Pi Network [PI] experienced a remarkable surge, gaining over 21% in just 24 hours to reach $0.25.
The market cap increased to $2.08 billion, with trading volume skyrocketing by 535% to $61.7 million, indicating heightened trading interest.
After weeks of trading within the $0.20 to $0.23 range, Pi finally broke free, driven by significant whale accumulation and positive derivatives flow.

Pi Breaks Free as Buyers Reemerge

The recent breakout of Pi from a descending channel indicates a significant change in the short-term market dynamics. The altcoin surpassed its critical resistance level of $0.2757, reinforcing bullish sentiments following several unsuccessful attempts to break through the $0.23 mark. This upward movement signifies that buyers are finally defending higher price levels since September. The next key target is approximately $0.3626, aligning with a previous supply zone. However, if the price encounters resistance around this level, it could retreat back toward the supportive range near $0.23.

Source: TradingView

Bullish Trends in Derivatives Market

Recent data from Futures Taker CVD reveals a strong trend of dominant buying, indicating aggressive long positions in the derivatives market. This trend suggests that traders are anticipating further price increases, bolstered by rising leveraged trading activity. Additionally, the rally's momentum coincided with increasing spot trading volumes and long positions, indicating that the rise is driven by solid conviction rather than merely covering short positions. Nevertheless, a sharp increase in funding rates might signal overheating, which could temper immediate gains.

Source: CryptoQuant

Whale Activity Indicates Significant Accumulation

Data on Spot Average Order Size highlights substantial accumulation by wealthy investors, corroborating that large buyers made significant purchases during the breakout. The arrival of these sizable orders coincided with the price crossing above $0.23, suggesting that this accumulation phase occurred before the price surge. Furthermore, the notable increase in trading volume supports the notion that these large entities are positioning for a potential mid-term price recovery. However, if these whales decide to take profits near significant resistance levels, a retreat toward lower support levels could occur.

Source: CryptoQuant

Will Pi Maintain Its Breakout or Fall Back into Consolidation?

Pi’s recent break above $0.27 showcases the structural momentum fueled by whale participation and dominant long positions. How well Pi maintains its position above this threshold will determine if it can continue to rise toward $0.36 or revert to a consolidation phase. Should buying pressure remain consistent, Pi has the potential to build on its recovery from a prolonged downtrend and reestablish a short-term bullish cycle.