NOIDA (CoinChapter.com) — Things seem to be looking up for Pi Network, with the team planning a mainnet launch in June (hopefully), and now, PI coin price has formed a bullish technical pattern that could result in a price boom for the PI coin if confirmed.
What is So Bullish About Pi Network in 2024?
PI coin price has formed a bullish continuation pattern called the ‘Symmetrical Triangle.’
The pattern forms when the price of an asset moves within converging trend lines, which means the slope of the lower trend line and the slope of the upper trend line are approximately the same, but they are moving toward each other.
A series of lower highs and higher lows converge to a point as the pattern develops over time, giving the pattern its triangular appearance.
Traders interpret the completion of a symmetrical triangle as a signal of a forthcoming breakout. The direction of the breakout is considered to be a continuation of the trend in place before the triangle formed, although it is not uncommon for breakouts to occur in the opposite direction.
As the Pi Network token was rallying before entering the pattern, a bullish breakout is likely. An increase in volume typically accompanies a breakout. Traders initiate a position after confirming the direction of the breakout.
Hence, the pattern gives PI Network token price a theoretical target near $77.1, a price boom of 136% from current levels.
However, symmetrical triangles can break out in either direction, which means a break below the support of the pattern might push PI coin price to the projected price target of $13, a drop of nearly 60%.
PI Price Fails To Hold On To $35
Meanwhile, PI coin price failed to hold on to the $35 price label after closing above it on Feb. 27, the first time the token closed above $35 since Dec. 2023. Bears’ booking profits could foreshadow what might happen once the team launches the Pi Network open Mainnet.
The mainnet launch has been a bone of contention among PI coin users due to the team’s delays in launching it. Several users left the platform as a result. Moreover, a mainnet launch could also result in PI coin price plunging if holders start booking profits, making it a double-edged sword.
Bulls would likely try to hold the 100-day EMA (blue wave) support near $31, as PI coin price breaching the immediate support could lead to further sell-off, pushing the token to the support near $27 before recovering.
On the other hand, breaking out of the pattern with high volumes could make PI coin prices boom.
if the rally restarts, the Pi Network token’s price could rally to the resistance from the 0.618 Fib retracement level near $37.6. Flipping the immediate resistance might help PI coin price target the resistance near $42.
The relative strength index, which measures asset price movement to determine overbought or oversold conditions, remained neutral for PI, with a score of 55.2 on the daily charts.