Pi Network is Testing Key Support Level: Will the Recovery Lead to a Breakthrough in Price Increase

The cryptocurrency market is experiencing a mixed performance ahead of the important FOMC meeting tomorrow, where the Federal Reserve will decide on interest rate changes. In this volatile environment, Pi Network (PI) has continued its downward trend, dropping over 14% in the past 24 hours. The price has dropped from a 24-hour high of $1.39 to a low of $1.08 before recovering slightly to $1.17.

Despite this adjustment, the current price action indicates that PI may be preparing for a potential trend reversal, which could lead to a strong price breakout. The Formation of the Compression Indicates the Possibility of Reversal On the 4-hour chart, PI appears to be forming a descending triangle pattern, a setup for a potential price reversal. After reaching a peak of $3.00 on February 26, the token has been trending downwards, losing over 60% of its value. Today, PI tested the lower support level of the triangle at $1.08, a key level that has previously acted as a strong support.

After this check, PI has turned around to bounce a bit and is now trading at $1.17. There is still room for consolidation sideways before attempting to move towards the resistance level of the month and the 20-day moving average (MA). If this model remains unchanged and PI successfully flips back, breaking out of the wedge could trigger a price surge, with key resistance levels at $1.36, $1.57, and $1.80. A breakout at these levels could push the PI price up by more than 50% from its current level. However, if PI cannot hold the support level of 0.75 dollars, another wave of selling pressure may push the price down to the 0.75 dollar support area, leading to a deeper correction. The MACD indicator on the 4-hour chart is showing potential signs of reversal. Although the MACD line is still below the signal line, the histogram chart is starting to show a decreasing price momentum. If PI continues to strengthen and the MACD line crosses above the signal line, this could confirm a change in the upward price momentum towards a breakout in price. Final Thoughts PI is at a critical decision point, with the consolidation pattern creating a clear setup for a breakout or a further downside move. A successful recovery from current levels could pave the way for a strong uptrend, while a breakdown below the support level could lead to further losses. With the broader market awaiting the FOMC decision, traders should closely monitor the price action of PI and technical indicators to confirm its next move.