Pi Network, buoyed by the good news of mainnet migration halt, will it break through $0.2000?

▲ Pi (PI)/ChatGPT generated image ©

Pi Network (PI), which had been suffering from constant selling pressure, is igniting the spark of a dramatic rebound by encountering unexpected good news: a temporary halt in mainnet migration. As buying sentiment gradually regains control, optimistic forecasts are emerging that a full-fledged upward rally could unfold if key resistance levels are broken.

According to FXStreet, an investment media outlet, on April 27 (local time), Pi Network is maintaining a stable trend around $0.1800 as of Monday, after surging more than 5% on Sunday. Notably, it has successfully formed a positive short-term buying bias by firmly holding above its key support level, the 50-day exponential moving average (EMA) at $0.1768.

The key driving force behind this price recovery is the two-day halt in mainnet migration, confirmed by PiScan data. Until now, Pi Network had been under continuous downward pressure due to the movement of mainnet tokens by so-called Pioneers (token holders). However, with this process temporarily paused, the selling pressure that had been weighing down the market is analyzed to have subsided.

Technical indicators also signal the return of buyers. On the daily chart, the Moving Average Convergence Divergence (MACD) histogram is gradually expanding and rising towards the zero (0) line along with the signal line. Additionally, the Relative Strength Index (RSI) is at 56, showing a steady upward trend without reaching an overbought state, supporting a gradual bullish reversal.

Currently, Pi Network's primary key resistance level is located at $0.1841, the upper trendline of the descending channel. If it definitively breaks above and closes above this resistance on a daily basis, it is expected to extend a significant upward rally past the psychological first hurdle of $0.2000, reaching $0.2446 where the 200-day exponential moving average is situated.

Conversely, if the upward momentum is exhausted and the price declines, the immediate defense line is expected to be the 50-day exponential moving average at $0.1768. If even this bottom support level breaks, the recent bullish momentum will be considered to have dissipated, and there is a constant risk of a deeper retreat into the existing long-term downtrend, thus requiring investors' special attention.

*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.*