Pi Network (PI) Price Analysis: Long positions struggle to break through $0.64, market structure remains bearish.

According to Gate news from AmbCrypto, Pi Network (PI) has performed well this week, rising 24% since June 24. This increase follows in the footsteps of Bitcoin (BTC), which has risen from $100,900 to $107,400 today, a rise of 6.44%.

Despite Bitcoin potentially continuing to rise to $110,000, PI coin seems to lack sufficient momentum to keep up. The lack of demand means that the possibility of a bearish reversal is greater than breaking the local high of $0.64.

PI rise may temporarily stagnate

From the 1-day chart, the market structure of PI coin still looks bearish. The moving averages and MFI indicate strong downward momentum.

The MFI reading is 31, indicating that the bears are in control, but the MFI has been slowly rising over the past week.

This indicates that there is a bullish divergence between the price movement and the MFI. The former has formed a series of lower lows, while the latter has formed a series of higher lows, marked in cyan.

Since this divergence occurred, the price has risen by 24.1% since Monday.

However, despite the rapid rise, a bullish structural breakout may be difficult to achieve. This is because the buying volume has been low in recent days. OBV has not yet approached the local high point before the breakout.

Therefore, the rise over the past three days may be a liquidity chase.

(Source: Trading View)

According to Coinalyze data, in addition to a price rise of 24%, the open interest also increased by 3.6 million USD, with a growth rate exceeding 30%. The increase in open interest and the rise in price indicate that speculative traders are eager to go long.

The insufficient spot demand indicates that this trend is likely driven by speculative traders and short squeezes.

Additionally, since June 24, the funding rate has been negative. This means that shorts are paying long positions and suggests a bearish sentiment in the market.

Continuing to break through the level of $0.64 will be difficult, and traders may want to remain cautious or look for short positions.

A breakout from $0.65 to $0.7 will invalidate this bearish bias.

(Source: Coinalyze, Trading View)