Pi Network, a cryptocurrency that has been gaining attention in recent times, has formed a double bottom at $0.21, a level that has been defended twice with increasing bullish volume. This development has sparked interest among traders and investors, who are now watching closely to see if the asset can transition from accumulation to a recovery rally. According to a recent analysis, a break above $0.23 could trigger a move towards the $0.25 resistance level, representing a potential 15-18% rebound from the defended support.
Technical Analysis of Pi Network Price
The $0.21 support level has been a crucial area for Pi Network, with two separate attempts to break lower being rejected. Both retests were accompanied by increasing volume, indicating that buyers are defending the level, rather than the price simply stabilizing due to a lack of selling pressure. This suggests that $0.21 is now acting as the bottom of the structural value range, and as long as the candles continue to close above it, demand will remain intact. The next key area of interest is the swing high of $0.23, which acted as resistance after the last bounce and now represents the neckline of the double bottom formation.
A decisive candle close above $0.23, ideally supported by further volume expansion, would confirm the bullish pattern and set the stage for an upward continuation. From a technical perspective, any sustained price movement above $0.22 supports the bullish thesis. Above this threshold, the probability of a rotation into the $0.25 resistance area increases significantly. In addition to being a psychological zone with round numbers, the $0.25 level is consistent with an important disequilibrium area where previous selling pressure originated.
Implications of the Double Bottom Formation
The double bottom formation in Pi Network’s price chart is still forming, and confirmation only occurs when the neckline is broken. However, the defense of support across two separate experiments provides strong evidence of accumulation at lower levels. The structure reflects similar behavior seen prior to recovery rallies earlier in Pi’s trading history, when price flattened, volume increased, and an upward expansion followed shortly thereafter. If Pi Network maintains strength above $0.22 and breaks through $0.23 with volume, the double bottom confirmation will unlock a high probability move towards $0.25.
Failure to stay above $0.21 would result in this structure being invalidated and lower liquidity zones re-exposed. As the cryptocurrency market continues to evolve, it is essential to stay informed about the latest developments and trends. For more information on Pi Network and other cryptocurrencies, visit Crypto News.
PIUSDT (4H) chart, source: TradingVIEW
Source: https://crypto.news/pi-network-price-forms-double-bottom-relief-rally-next/
