The cryptocurrency market has rebounded following a poor start to the week. Bitcoin, the leading cryptocurrency by market cap, is trading above $93K after surging by 7% since Tuesday.
The rally has affected altcoins too, with Pi Network (PI) adding 2% to its value at press time. PI’s recovery comes following four consecutive days, marking a downcycle within a larger consolidation range.
The cryptocurrency could be on its way to a massive rally fueled by growing whale demand.
The recent support could serve as a potential accumulation zone, with a possible upside breakout anticipated in the near term.
While there is a growing interest from whales, the technical outlook for PI remains mixed, with bearish signals still dominating the market.
PI tops $0.23 amid whale interest
PI is up by 2% in the last 24 hours and has crossed the $0.23 resistance level a few hours ago. The positive performance comes amid a steady interest in whales during the consolidation phase.
The interest in this phase suggests that the whales consider the level to be an accumulation zone, and this could foreshadow a recovery run.
Data obtained from CryptoQuant shows an increase in whale activity in the PI spot market, boosting the average order size.
In April, PI experienced a similar accumulation phase, and it was followed by a sharp recovery in early May. The whales are optimistic that PI’s value could surge higher in the following days or weeks.
Will PI rally to the $0.30 resistance level after consolidation?
The PI/USD daily chart is bearish and efficient as Pi Network has lost 7% of its value in the last seven days. However, the coin is showing signs of recovery and could rally higher in the near term.
Currently, PI is trading below the 50-day Exponential Moving Average (EMA).
The recovery recorded since Tuesday triggers an abrupt end to its bearish trend that began from the $0.2860 upper resistance of a consolidation range.
PI has now established a strong support at $0.1919, which coincided with the October 11 low recorded during the deleveraging event that occurred two months ago.
At press time, PI is trading above $0.23. If the daily candle closes above $0.2860, it would confirm a bullish breakout of the consolidation range.
This could allow PI to rally towards the next resistance levels at $0.3220 and $0.3987, corresponding to the low of August 1 and the high of August 30, respectively.
Despite that, the technical indicators on the daily chart remain bearish. The Moving Average Convergence Divergence (MACD) crossed below its red line on Monday, indicating that the bears are still in control.
The RSI of 47 is closing in on the neutral 50, suggesting that the bulls are struggling to regain control of the market.
If the bears win, PI could retest the $0.2000 psychological level and retest the October 11 low at $0.1919.
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