Pi Network (PI) is experiencing a modest recovery, rising nearly 1% as of Wednesday, following a previous day’s gain of 0.40%. This uptick comes amid growing retail interest, as indicated by an increase in the network’s social dominance. Currently trading above $0.20, the token’s technical outlook appears promising, with potential for a rebound in the New Year.
Social media engagement around Pi Network has surged significantly. According to data from Santiment, the social dominance of Pi Network has jumped from 0.008% to 0.086% in just one day. This rise suggests that retail investors are becoming increasingly optimistic about the token’s outlook as 2024 approaches.
Technical Indicators Suggest Potential Rebound
The technical analysis for PI remains cautiously optimistic. The token continues to trade above the critical support level of $0.20, despite previous unsuccessful attempts to rebound. Currently, PI is preparing for what appears to be a Morning Star pattern, complemented by a Doji candle from the day before. If this pattern materializes successfully, it could drive the price toward the 50-day Exponential Moving Average, currently positioned at $0.2191.
However, market momentum remains mixed. The Relative Strength Index (RSI) stands at 41, indicating a neutral to bearish sentiment. At the same time, the Moving Average Convergence Divergence (MACD) shows a slight upward trend, suggesting a gradual increase in bullish momentum.
Despite these mixed signals, traders should be aware of potential downside risks. If PI falls below the low of $0.1919 recorded on October 11, it could face further testing at the S2 Pivot Point, located at $0.1593.
Trading Volume and Market Sentiment
Trading volume for Pi Network has shown fluctuations throughout December. While the daily trading volume had consistently remained above 7 million PI, it spiked to 8.58 million PI on Wednesday, down from a high of 38.65 million PI on December 1. This decline in volume could reflect a shift in investor sentiment as traders await more definitive market movements.
The renewed interest in Pi Network is noteworthy as it suggests that the crypto community is closely monitoring its performance and is eager to capitalize on any potential rebounds. As the New Year approaches, the market will be watching closely to see if Pi Network can sustain its upward momentum and exceed the $0.20 threshold.
In summary, Pi Network is showing encouraging signs of recovery, driven by increased social interest and a technical outlook that hints at potential price gains. Investors remain hopeful as they look forward to the New Year, with many anticipating that PI could experience further growth in the coming weeks.
