Pi Network (PI) is showing signs of recovery, edging higher by nearly 1% on Wednesday. After a previous day’s modest gain of 0.40%, the price movement indicates a potential rebound from its recent low of $0.20. This uptick follows a notable increase in social media engagement, suggesting a renewed interest among retail investors as the New Year approaches.
Data from Santiment reveals that Pi Network’s social dominance—measuring its share of discussions in the cryptocurrency media—has significantly increased. It currently stands at 0.086%, a notable rise from the previous day’s figure of 0.008%. This surge in social activity may signal anticipation for a rebound as investors prepare for the upcoming year.
Technical Analysis Points to Potential Rebound
The technical outlook for PI remains cautiously optimistic. Currently, Pi Network is trading above $0.20, despite facing several unsuccessful attempts to regain momentum. The recent price action has formed a Doji candle pattern, alongside a potential Morning Star pattern that could signal a bullish reversal. If this pattern completes successfully, analysts suggest that the price could move towards the 50-day Exponential Moving Average, currently at $0.2191.
Trading volume has fluctuated significantly throughout December, maintaining levels above 7 million PI. However, on Wednesday, the trading volume has decreased to 8.58 million PI from 38.65 million PI recorded on December 1. This decline may reflect market participants’ caution as they await clearer signals of a sustained recovery.
Market Indicators Show Mixed Signals
As of now, momentum indicators present a mixed picture. The Relative Strength Index (RSI) is positioned at 41, indicating neutral to bearish pressure, while the Moving Average Convergence Divergence (MACD) shows a gradual increase. This divergence suggests that while some investors remain cautious, there is a growing bullish sentiment among others.
Investors should remain vigilant, as a drop below the October 11 low of $0.1919 could prompt further declines, potentially testing the S2 Pivot Point at $0.1593. The current trading environment remains dynamic, with the possibility of significant price fluctuations as the market approaches the New Year.
In summary, Pi Network’s recent performance and rising social engagement may indicate a potential for recovery. Investors will be closely monitoring the market as they head into 2024, assessing both technical indicators and social trends that could influence Pi Network’s price trajectory in the coming weeks.
