- Pi network is facing price volatility amid large liquidations and expected token unlock.
- Technical analysis suggests a breakout above the $1.9948 key resistance level is necessary for a bullish rally.
Pi network [PI] has been on the top of Coingecko‘s list of trending cryptocurrencies, sparking price volatility and speculation in the market.
At the time of writing, the price was oscillating around $1.79, with a 40% dip in trading volume in the last 24 hours. With a strong resistance at $2, the market questions whether the bulls will break through.
Technical setup
PI has been consolidating sideways, suggesting market indecision in the last 24 hours. Ever since its mainnet launch, the coin has been testing the $1.9948 key resistance level on the 1-hour chart while facing strong resistance.
According to analyst Zenith Zoro on CoinMarketCap, a breakout above this level could push PI to $2.0364 in the short term. However, further rejection at this level may lead to a dip toward the $1.5682 as bearish pressure increases.
Source: TradingView on CoinMarketCap
PI’s relative strength index (RSI) was 61 (upper neutral zone) at press time, with a decreased trading volume.
This indicates that traders have been selling the coin, decreasing the bullish momentum required to break above the $2 key resistance zone.
Pi Network on-chain insights
Looking at the liquidation chart, traders seemed optimistic in their long and short positions. However, high price volatility frustrated traders, and many were forced to exit their positions in the past two weeks.
Source: Coinglass
With large liquidations in the past two weeks, the coin’s Open Interest has dipped 2.45% in the last 24 hours per Coinglass data, at press time. The long-short ratio stood at 0.83, suggesting bearish momentum.
Market outlook and trends
Progressive Pi Network unlocks are expected to increase the circulating coins and impact future prices. PI market oscillators and moving averages signal ‘sell’ amid price fluctuations.
With a huge unlock event scheduled on the 17th of March, the bulls face strong resistance.
Source: PiScan
According to James at Zito Realty LLC, the real estate company plans to accept PI as a payment method for homes. With the market speculating on a possible PI listing on Binance, the coin could face renewed buying pressure.
So, what next?
A strong buying pressure above the $1.9948 key resistance level amid positive market news could strengthen PI bulls, leading to a breakout and upward rally in the long-term.
Traders should watch out for scheduled unlocks, market trends, and price action around the key levels for further insights.
