The cryptocurrency market is showing signs of a steady recovery after experiencing significant volatility last week, which saw Ethereum (ETH) drop to a low of $2622 before recovering to approximately $2950. This market upturn is providing a boost to several altcoins, including Pi Network (PI), which is currently exhibiting an interesting technical pattern on its daily chart.
PI is experiencing a modest 4% increase in intraday trading. However, beyond this immediate price movement, the developing chart structure is particularly noteworthy, suggesting the potential for a larger price surge in the near future.
Symmetrical Triangle Pattern
On the daily chart, PI's price action has been consolidating within a symmetrical triangle. This chart formation is characterized by contracting price ranges and is often a precursor to a significant breakout in either an upward or downward direction. While symmetrical triangles are considered neutral patterns, their breakouts are frequently accompanied by increased market volatility.
During the recent market downturn, PI experienced a dip towards the lower support trendline of the triangle, near the $0.2160 mark. This trendline has served as a consistent support level throughout the consolidation period, and buyers have successfully defended it on multiple occasions. The subsequent rebound from this zone has propelled PI back towards the $0.2485 level, positioning the price just below the upper resistance trendline of the triangle.
As PI approaches this resistance level while consistently making higher lows, the momentum for a potential breakout is building. This tightening price action indicates increasing pressure that is likely to be resolved by a decisive price movement.
Future Outlook for PI
A successful push by bullish investors above the upper resistance trendline of the triangle, accompanied by a reclaim of the 100-day Moving Average around $0.2755, would signal a confirmed bullish breakout from the pattern. Following this confirmation, the next significant price target is projected to be around $0.3169. This level represents a potential upside of over 27% from the current trading price, based on the measured move projection of the triangle pattern.
Conversely, if PI encounters resistance and fails to break through the upper trendline, the price may continue to trade within the confines of the triangle. In such a scenario, the $0.2280 area would become a crucial short-term support level to monitor for any signs of renewed buying interest.