The Pi Network Token has climbed 2% over the past 24 hours, riding the wave of a broader crypto market rally. At press time, the altcoin trades at $0.63
However, despite this upward movement, a key technical indicator has posted a bearish divergence with its price, raising doubts about the sustainability of the recent gains.
The PI Token Rally Lacks Conviction
Readings from the PI/USD one-day chart show the token’s Chaikin Money Flow (CMF) below the zero line and in a downtrend, forming a bearish divergence. As of this writing, this indicator stands at -0.10.
The CMF indicator measures how money flows into and out of an asset to gauge buying and selling pressure. When its value is negative while an asset’s price climbs, a bearish divergence emerges.
This trend indicates that the upward price movement is not supported by strong buying pressure. This suggests a lack of conviction behind the PI token rally and hints at a potential pullback.
Moreover, on-chain data reveals that PI continues to be weighed down by negative sentiment, further exacerbating the downward pressure on its price. According to Santiment, this metric stands at -0.45 at press time, with its negative value reflecting the diminished investor sentiment.
The weighted sentiment metric analyzes social media and online platforms to gauge the overall tone (positive or negative) surrounding a cryptocurrency.
When this metric’s value is negative, it signals that overall market sentiment towards the asset is bearish, with negative discussions and outlooks outweighing the positive.
This highlights PI’s continued struggles, as the lack of investor optimism continues to stall any significant upward movement.
PI Approaches Key Resistance at $0.65
PI currently trades at $0.63, approaching the resistance formed at $0.65. If demand begins to wane, this uptrend would witness a reversal and could trigger a price decline to $0.57.
However, if new demand enters the market and PI’s current rally receives support, it could break above the $0.65 resistance and climb toward $0.72.
The post Pi Network Token Rises, But Bearish Divergence Threatens New Gains appeared first on BeInCrypto.
