Pi Network (PI) Price Analysis August: Key Levels to Watch

Pi Network’s token price has continued its strong downtrend which began around mid-May. Following a swift recovery in late-June to what appears to be the top of a well-defined descending channel, the price has maintained a consistent downtrend – anguish for holders or bullish traders in a complicated Altcoin season. However, there’s been some positives, as the token has gained about 15% over the past 24 hours. PI currently trades at a market capitalization of $3.26 billion, with a 24-hour trading volume of trading volume of $121.32 million, per CoinMarketCap. 

The TradingView chart above shows that the PI/USDT price decline accelerated in late July, pushing price towards the $0.32 region before a recent rebound brought it back near $0.40 where it currently trades. The descending channel indicates that lower highs and lower lows are consistently being formed, with the upper and lower boundaries (trendlines) acting as support and resistance. 

Bullish Scenario:

The current rally has broken above the midline of the descending channel and is testing the 20-day EMA near $0.40. Price will need to hold and close above this region for multiple days to encourage bullish bias. If buyers can sustain the momentum, this could lead to a breakout from the upper channel line which also doubles as the 200-period MA as well as the 200-period EMA on the 4-hour timeframe, targeting the $0.46 resistance. 

A further push from buyers, accompanied by strong volume, could potentially see the PI price retest the key supply zone between $0.50–$0.54 — an area that acted as major support in April and May. This level is crucial, given that a successful break and retest will strongly indicate a potential trend reversal. This would also put the price back above the long-term moving averages.

Bearish Scenario:

The PI price recently tested the upper boundary of the descending channel and was rejected, resuming its downward movement. Primarily, the bearish scenario is that the price will continue to follow the descending channel, targeting the lower support levels around $0.29. A break below this support would open the door for a much deeper decline.

The chart hasn't formed long enough to reveal the 200-day MA/EMA, however, the price direction and struggle with 20-day EMA (red line) indicate that those higher key moving averages will likely be above the upper channel line if formed. 

Working with the obvious 20-day EMA and upper channel boundary, price would need to close decisively above those levels or risk the return of aggressive selling pressure towards $0.34 and subsequently $0.29 as previously mentioned. So far, the price has failed to break out of the channel and has started to roll over, which could indicate a continuation of the downtrend towards the lower boundary of the channel.