Pi Network Notification Code rise, But the Decrease in Distribution Threatens New Rise Levels

Pi Network Token has increased by 2% in the past 24 hours, responding to the bullish wave of the broader crypto market. At the time of the press report, this altcoin was trading at $0.63. However, despite this bullish move, an important technical indicator has shown a bearish divergence, raising doubts about the sustainability of the recent gains. The Bullish Surge of PI Token Lacks Conviction The data from the one-day PI/USD chart shows that the Chaikin Money Flow (CMF) of this token is below the zero line and is in a bearish trend, creating a bearish divergence. As of the time of writing this article, this indicator is at -0.10.

The CMF indicator measures the flow of money into and out of an asset to assess buying and selling pressure. When its value is negative while the price of an asset increases, a bearish divergence will occur. This trend indicates that the bullish move is not supported by strong buying pressure. This suggests a lack of conviction behind the price increase of the PI token and hints at the possibility of a pullback. Furthermore, on-chain data shows that the PI continues to be weighed down by negative sentiment, exacerbating its bearish pressure. According to Santiment, this metric was at -0.45 at the time of the press, with the negative value reflecting a decline in investor sentiment.

The sentiment index weighted analyzes social media and online platforms to assess the overall tone (positive or negative) surrounding a cryptocurrency. When the value of this index is negative, it signals that the overall market sentiment towards the asset is bearish, with discussions and negative outlooks overshadowing the positive. This highlights the ongoing difficulties of the PI, as the lack of investor optimism continues to prevent any significant bullish moves. PI Approaches Major Resistance Level At $0.65 PI is currently trading at $0.63, nearing the resistance level formed at $0.65. If demand starts to weaken, this bullish trend will witness a reversal and could trigger a price drop to $0.57.

However, if the new demand entering the market and the current bullish trend of PI receive support, the price may surpass the resistance level of $0.65 and rise to $0.72.