Pi Network’s native token PI has bounced back sharply after plunging to an all-time low of $0.1533 during last Friday’s market crash. Over the past three days, the altcoin has defied broader bearish sentiment, recording steady gains as traders begin to re-enter the market.

Technical indicators suggest that buying momentum is building, positioning PI to potentially break above its previous resistance levels.

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PI Coin Shows Early Signs of a Bullish Reversal 

Readings from the PI/USD daily chart show that the red bars of its Elder-Ray Index have steadily shrunk over the past few sessions, signaling a gradual reduction in sell-side pressure. As of this writing, this momentum indicator is at -0.0482. 

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The Elder-Ray Index measures the strength of bulls and bears in the market. When it returns red histogram bars whose sizes begin to reduce, it indicates that bearish momentum is weakening and buyers are gradually regaining control. 

This pattern usually precedes a bullish trend reversal or short-term rally, especially when supported by other bullish signals.

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In PI’s case, its positive Balance of Power (BoP) reading supports this bullish outlook. At press time, this is at 0.59 and in an upward trend, signalling the growing buy-side conviction among traders.

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Author: Abiodun Oladokun