Pi Token’s Wild Ride: Will Bitcoin’s Momentum Propel It Past $0.9?

Pi Token’s volatility has traders on edge—swings sharper than a Wall Street intern’s mood. Now, all eyes are on Bitcoin’s next move.

Can BTC’s gravitational pull drag Pi past the elusive $0.90 resistance? Or will this altcoin keep dancing to its own erratic tune?

Funny how these ‘decentralized’ tokens still cling to Bitcoin’s coattails when the going gets tough.

Source: Coinalyze

Data from Coinalyze revealed that bullish conviction was not high in the short term. The price ROSE by 14% in the last 24 hours and the Open Interest climbed by 17%. This seemed to be a positive sign – Speculative traders might be willing to go long as the short-term performance turned bullish.

It was not intense, and the funding rate was just barely above zero. Together, the data showed that short-term expectations were bullish, but not overheated. These expectations might be aided by Bitcoin [BTC] seeking to set new all-time highs.

Does the price action suggest PI would rally soon?

Source: PI/USDT on TradingView

On the 1-day chart, PI has retraced below the 78.6% Fibonacci retracement level. These levels were plotted based on the rally to $1.6 earlier this month. This rally breached the $0.745-level – A local high from April. This shifted the market structure bullishly.

The sudden rally and subsequent retracement meant that the 1-day timeframe did not show strong bullish momentum. The MACD was above the zero line, but the red histogram bars were a result of the quick retracement.

The inability of the bulls to defend the $0.8 retracement was a worry, but this worry was short-lived. At press time, PI was trading above the level once more, and could be set to rally higher.

The CMF was above +0.05 over the past ten days, and the A/D indicator has trended higher too. These were two signs of high buying pressure, a result of the trading volume surge on 11 and 12 May.

Source: PI/USDT on TradingView

Zooming in on the 4-hour chart, we can see that a local resistance zone was present at $0.9. It was a bearish order block on the H4 timeframe, highlighted in red.

The volume indicators, which had been firmly bullish on the 1-day timeframe, were neutral on the 4-hour chart. Neither the CMF nor the A/D line revealed heightened buying pressure. In fact, the MACD was yet to FORM a bullish crossover above the zero line.

Therefore, unless we see a surge in demand in the short term, PI could struggle to rally past $0.9. On the other hand, a MOVE beyond $0.9 and a hike in buying pressure could offer a buying opportunity.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion