Pi Network (PI) price is currently at $ 0.1714 inside a descending channel on the 8-hour chart. But three indicators are now starting to give bullish signals. Two of them diverge from the downtrend. And the third supports the price.
The change comes after Pi Network completed its first KYC validator reward distribution, processing 526 million tasks across more than 1 million validators. With the V21.2 hard fork completed on April 6 and 119,000 pioneers having completed other migrations, the network is delivering milestones while the Pi Coin price is still declining.
RSI and MFI diverge as dip buyers come in
Between March 27 and April 7, Pi Coin price made lower lows within the descending channel. However, the Relative Strength Index (RSI), a momentum indicator that measures the speed of price changes, did not follow.
RSI formed a weaker higher low during the same period, creating a bullish divergence on the 8-hour chart. The current reading of 34.54 is below the neutral 50 line, but the divergence suggests that selling momentum is decreasing with each new low.
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Money Flow Index (MFI), a volume-weighted momentum indicator that serves as a gauge of activity from dip buyers, tells a similar story. While prices fell from March 27 to April 7, MFI moved upwards. The current value of 45.24 shows that buyers have entered on dips despite falling prices.
The background in the network supports the change in demand. The Pi Core Team distributed rewards to over 1 million KYC validators who processed 526 million verification tasks, a milestone the team described as proof of their decentralized workforce system.
Chart divergences alone do not confirm a reversal. Whether larger holders participate is now the question.
CMF rises as network milestones increase
Chaikin Money Flow (CMF), an indicator of buying and selling pressure from larger holders, supports the argument. CMF shows 0.02 and is above the zero line. Between April 5 and April 7, CMF rose alongside the price. This suggests that the recent rise may have support from larger holders and not just private speculation.
The timing coincides with on-chain activity. Over 119,000 Pi Network pioneers have completed other migrations and released transferable balances. While other migrations add more tokens to circulation, the CMF trend suggests that this new supply is being absorbed and not dumped.
With momentum, dip-buying, and flow data pointing in the same direction, the price chart becomes crucial for whether these signals actually provide a real breakout.
Pi Coin price levels determine the trend
PI is trading at $0.171, just 2% below the upper trendline of the descending channel at the 0.236 Fibonacci level of $0.174. A daily close above $0.174 will break the bearish structure and shift short-term momentum from bearish to neutral.
Above the channel is $0.180 at the 0.382 Fibonacci level, the first resistance. A sustained rise targets $0.189 at the 0.618 Fibonacci level. $0.204 becomes the extended target if momentum continues.
Breakouts from descending channels have nuances. Volume must confirm the movement. A breakout with low volume (current situation) above the upper trendline risks trapping buyers before the downtrend continues. That CMF remains above zero will be a confirmation filter.
Downward is $0.165 support level. A break below this will invalidate the RSI and MFI divergences and continue the broader decline. $0.174 now separates a channel breakout towards $0.189 from a continued decline towards and even below $0.165.