- Pi Network is at the accumulation stage and it might have a huge breakout.
- An upside break at $1 would result in a 388% run-up to the neckline of a double bottom of $1.6675.
- Low volume and narrow price action indicate that a markup phase in the Wyckoff style could be close.
Pi Network is secretly pre-positioning a possible breakout, months after consolidating. As a huge whale builds up and the technical indicators coincide with the Wyckoff Accumulation phase, the pattern is indicating a major move is on the way. The sideways price action with low volume is often a prequel to parabolic rallies, as well as in other altcoins such as MYX Finance. Key resistance levels are now focused on and can cause the explosive upward price action.
Wyckoff Theory Signals a Pi Coin Price Rebound
According to technical analysis, the Pi Network might be about to have a huge breakout. The most optimistic factor that reinforces this opinion is the Wyckoff Theory that describes the common steps in which assets pass through; accumulation, markup, distribution, and markdown.
Pi seems to be in accumulation in this instance, as indicated by the recent sideways movement within a narrow range and low-volume space. Interestingly, there is also the evidence of a single large whale collecting Pi, which supports the thought that smart money is setting itself in front of a possible advancement.
This step may be followed by a markup stage, during which price may begin to rise parabolically as more people enter the market. One recent example of this trend in action is MYX Finance, which shot up following weeks of consolidation.
Price structure wise, Pi has experienced a long-term decline since nearing the high of about $3.20, however, the current stabilization around $0.30-$0.35 is indicative of a possible base. The daily chart also shows an unsuccessful attempt of breaking out in May and further low highs, which affirm earlier selling pressure. But, the tight consolidation at the moment suggests indecision in the market- a characteristic feature in the process of accumulation.
In case the bullish Wyckoff set-up occurs, the initial significant price objective is the psychological level of $1.00, and then the neckline of a possible double-bottom reversal arrangement is $1.6675. This would be an upside of 388 percent of the current price of about $0.3447.
Bulls should regain the breakout with high volume at the $0.50 level to verify the breakout. A failure to hold $0.30, though, would negate the bullish thesis and indicate additional downside risk.
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