Pi Network’s native token, PI, has recently seen some positive price movements, raising speculation about whether it could break the $0.75 resistance level. However, the outlook for Pi’s price is not entirely optimistic, as persistent selling pressure and market conditions remain obstacles to a sustained rally.

Short-Term Bullish Momentum and RSI Signals

In recent days, Pi Network has experienced a brief but notable surge in price. The token’s Relative Strength Index (RSI) climbed above the neutral 50 level, suggesting some short-term bullish momentum. The RSI is a commonly used indicator to assess whether an asset is overbought or oversold. When it crosses above 50, it typically signals that bullish forces may be taking control of the price action.

On April 5, Pi saw a remarkable bounce, with its price rising by as much as 99% in just six hours. Such a price surge generated excitement, with hopes that it could be the beginning of a broader trend reversal. However, it is essential to remember that this price increase occurred in the short term, and the bigger picture remains more complex.

Resistance at $0.75

While the price jump was a positive sign, it was not enough to break through significant resistance levels. In fact, Pi Network’s price found resistance at around $0.75, a crucial threshold that has acted as a barrier for bulls. This level was also a previous lower high from March, making it a critical point for determining whether a breakout could occur.

During the volatile trading session on April 5, Pi briefly reached $0.80 but was quickly rebuffed by selling pressure. This inability to maintain higher levels signals that bearish forces remain dominant in the market, making it difficult for bulls to establish a strong trend reversal.

Persistent Selling Pressure and Bearish Sentiment

Despite the short-term bullish signals, the overall market sentiment around Pi remains bearish. The Chaikin Money Flow (CMF) indicator, which measures the buying and selling pressure in a given market, has remained below the -0.05 mark for the past week. This indicates that strong selling pressure has persisted and has kept the token from gaining upward momentum.

Market participants are not showing strong enthusiasm for Pi, with a significant outflow of capital from the market. This suggests that many investors are still uncertain about the future of the token and may be hesitant to accumulate more PI in the current environment.

Open Interest and Speculative Interest

The Open Interest metric, which tracks the number of outstanding contracts in a particular market, has increased over the past few days. This could indicate growing speculative interest in Pi Network, as traders look for potential opportunities amid the price fluctuations. The increase in Open Interest has been accompanied by a price bounce, which further suggests that some traders are betting on short-term price movements.

However, the Funding Rate remains bearish, which means that the majority of traders are still shorting the market. This could lead to a short squeeze, where short positions are forced to cover as the price rises, temporarily driving prices higher. However, without more substantial buying pressure, this could be a temporary spike rather than a sustained rally.

What’s Next for Pi Network?

Looking ahead, Pi Network’s price action is likely to be heavily influenced by the broader market dynamics. While short-term bullish momentum exists, it is clear that the bears still hold significant control. Unless the selling pressure eases and buying interest picks up, it will be challenging for the bulls to push the price beyond the $0.75 resistance level.

To see a meaningful recovery, Pi Network would need to reclaim $0.75 as support. If it can do so, it could open the door for further upside, potentially testing higher resistance levels. However, if the bears continue to dominate, Pi may struggle to hold the recent gains, and the price could fall back to lower support levels, such as $0.55.

In conclusion, while Pi Network has shown some positive signs of short-term bullishness, the broader market sentiment and persistent selling pressure suggest that it may face challenges in breaking $0.75. Investors should remain cautious and closely monitor any changes in market conditions, as the situation could evolve rapidly.