Pi Network in Extreme Squeeze, Bracing for Major Volatility
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Pi Network Price Analysis – PI/USD Stays in Consolidation
Pi Network market is currently in an extreme state of consolidation, signaling that a period of significant volatility is likely imminent. The primary technical feature on the daily chart is an exceptionally tight Bollinger Band squeeze. This condition arises when volatility drops to historic lows and often precedes a powerful, high-volume breakout. The direction of the breakout, however, is yet to be determined.
PI/USD Market Key Levels:
Resistance levels: $0.7116, $1.6622
Support levels: $0.4090
The daily chart for PI/USD illustrates a market that has been trading in a very narrow horizontal channel since late May. The price is coiled tightly above the critical support level of $0.4099. The Bollinger Bands have converged into one of the tightest squeezes seen this year, indicating that energy is being stored for a substantial move.
Investors and traders are on high alert, as a break of the narrow range between the upper band and the lower band will likely dictate the trend for the coming weeks. The Money Flow Index (MFI) is hovering just above the neutral 50 mark, indicating a slight positive bias in money flow but ultimately reflecting the market’s profound indecision. With the price pinned to the 20-day moving average, the market is perfectly balanced, awaiting a catalyst.
The next move for PIUSD will be explosive but is currently directionally uncertain. A decisive daily close above the upper Bollinger Band would confirm a bullish breakout, with the first major resistance target at $0.7116. Conversely, a breakdown and close below the crucial $0.4099 support level would constitute a major bearish signal, potentially leading to a sharp decline as there is no other visible support on the chart. Traders should exercise patience and wait for a confirmed breakout before committing to a position.
Market Expectation
The 4-hour chart reinforces the analysis from the daily timeframe, displaying its own severe Bollinger Band squeeze. This alignment across multiple timeframes strengthens the case for an imminent volatility expansion. Interestingly, the Money Flow Index (MFI) on this shorter timeframe is in the overbought region, which might suggest a slight build-up of buying pressure within this tight consolidation, giving a marginal edge to a potential bullish resolution.
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