Pi Coin (PI) Rebounds 4%...Riding Bitcoin's $85,000 Rally, But 'Bearish Signals' Remain

▲ Pi Coin (PI)/ChatGPT generated image ©

Pi Network (PI) is accelerating its recovery, rebounding for two consecutive days. As Bitcoin (BTC) surged to $85,000, risk appetite spread to high-risk cryptocurrencies, but PI still remains below key long-term moving averages, leaving a technical burden to confirm a trend reversal.

According to investment specialized media FXStreet on September 21 (local time), Pi Network continued its recovery on Monday with a 4% rise, following a 2% rebound the previous day. As the overall cryptocurrency market rose, with Bitcoin reaching an 8-month high of $85,000, investors' risk appetite for high-risk tokens like PI also increased.

Overall market sentiment also strengthened. In the process of Bitcoin surpassing $85,000, positions worth $688 million were liquidated in the cryptocurrency market in the last 24 hours, with short position liquidations accounting for $598 million. The Fear and Greed Index rose to 77, indicating strong risk appetite. FXStreet analyzed that this environment is favorable for the rebound of high-risk cryptocurrencies like PI.

The Pi Core Team's efforts to expand the ecosystem also drew attention. AI integration, network expansion, and improvements in Know Your Customer (KYC) procedures were presented as factors that could support PI demand. However, the price trend is still closer to a short-term rebound than a clear bullish reversal.

Technically, PI is rebounding towards its 50-day Exponential Moving Average (EMA) located at approximately $0.0924. However, it remains significantly below the 100-day EMA of $0.1027 and the 200-day EMA of $0.1348, indicating that the long-term trend is still bearish. The Moving Average Convergence Divergence (MACD) also remains in negative territory, and the Relative Strength Index (RSI) is around 48, showing a moderate recovery rather than strong upward momentum.

In the future, a confirmed breakthrough of the 50-day EMA at $0.0924 could extend the rebound to the 50% Fibonacci retracement level at $0.0990. Conversely, if it declines, the 23.6% Fibonacci retracement level at $0.0827 is the first support, and if that gives way, the previous low of $0.0704 is considered the next defense line. Ultimately, whether this short-term rebound will lead to a trend reversal hinges on whether $0.0924 is breached.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*