Pi Network Remains Deadlocked In Consolidation Even As Inflows Surge

Pi Network has faced a downtrend followed by a consolidation phase that has prevented the altcoin from posting any meaningful gains. 

While consolidation often precedes a breakout, the pressure from broader market cues may complicate this for Pi Network in the short term.

Pi Network Investors Are Trying

The Chaikin Money Flow (CMF) indicator is showing signs of an uptick, which suggests inflows into Pi Network after nearly a week of low investor activity. The CMF sits above the zero line, signaling that investors are starting to regain confidence in the potential for recovery. 

This shift in sentiment could indicate that holders are optimistic about potential gains and are taking advantage of the current low prices. However, while the CMF reflects some optimism, it does not guarantee a breakout. The uptick may be short-lived if market conditions do not align.

Pi Network’s macro momentum remains challenged by broader market conditions. The Moving Average Convergence Divergence (MACD) indicator shows that the altcoin is still struggling with bearish momentum. The presence of red bars on the MACD histogram, although fading, indicates that selling pressure remains in the market. 

A bullish crossover on the MACD would be needed to signal that Pi Network is ready for a more substantial price move. Until this occurs, Pi Network’s price is likely to remain trapped within its current range.

PI Price Faces Challenge

Currently, Pi Network is trading at $0.64, facing resistance from broader market conditions. Despite this, the cryptocurrency is holding steady, suggesting that investors are fighting against negative sentiment to keep the price afloat. The consolidation phase indicates that a potential breakout could be on the horizon if positive momentum gathers.

There is a higher likelihood of Pi Network climbing and breaching the $0.71 resistance level. If the current investor optimism continues, a rise past this point could lead Pi Network to reach $0.78.

However, if Pi Network falls below the crucial support levels of $0.61 and $0.57, the price could slip to $0.51, invalidating the bullish thesis. Investors will need to monitor these levels closely to determine if Pi Network can break free from its consolidation phase or if further declines are imminent.