Pi Network (PI) breaks an all-time high when trading volume exceeds $3 billion

Pi Network (PI) has skyrocketed by more than 70% in the past 24 hours, pushing its market capitalization to $16 billion and trading volume to more than $2.3 billion in the last 24 hours. Despite reaching a new record high near $3, this technical divergence indicates an unstable path ahead for PI. Traders are watching closely as the token navigates between bullish momentum that could push it to $4 and warning signs that could trigger a retracement to support as low as $1.70 or even $0.79. Pi Network DMI Shows Very Strong Increasing Trend The Pi Network's (DMI) Directional Movement Index is showing notable growth momentum, with the (ADX) Average Directional Index soaring to 57.7 from just 12.3 the previous day. ADX is an important technical indicator that measures the strength of a trend regardless of its direction. Values below 20 usually indicate a weak trend, 20-40 indicates a moderate trend, and values above 40 signal a strong trend. This significant increase in Pi's ADX from a weak zone to a very strong zone indicates that the strength of the underlying trend is increasing significantly.

In addition to the sudden increase of ADX, Pi's positive directional indicator +DI( has surged to 40.9 from 14.6 two days ago, while the negative directional indicator -DI) has dropped sharply to 1.1 from 19.4 in the same period. When +DI is significantly higher than -DI, as in the current case of Pi, it confirms a strong uptrend. The combination of high ADX value with a large difference between +DI and -DI indicates that Pi Network is undergoing a particularly strong uptrend with minimal selling pressure. If these technical signals maintain their current configuration, they could indicate a further bullish price trend towards Pi in the near term, as the market seems to be under strong buying control with minimal resistance. PI BBTrend Is Negative Despite Sharp Price Increase Despite the continuous price increase, Pi's Bollinger Band trend indicator (BBTrend) has sharply decreased to -11, marking a significant drop from the level of 51.2 just three days ago, after fluctuating between 1 and 3 yesterday. The BBTrend indicator is a specialized technical tool that measures price movements against Bollinger Bands. Basically, it quantifies price trends in channels based on this volatility. Positive values indicate upward price movement relative to the bands, while negative values indicate downward or returning price movement to the middle band.

The sharp decrease to -11 in Pi's BBTrend could indicate that the current uptrend is being prolonged excessively and is likely to easily fall into a phase of correction or consolidation. When BBTrend turns significantly negative after a bull run, this usually indicates that the asset has moved too far too fast and is currently trading at levels that may not be sustainable in the short term. This technical warning sign suggests that Pi is likely to experience a retracement to the Middle Bollinger Bands, a period of horizontal consolidation, or at least a slowdown in its upward momentum. Can Pi Network reach $4 in March? Pi Network price hit a new record high just hours before it approached $3 for the first time. With this strong momentum, Pi may continue to rise, breaking through the psychological barrier of $3 and testing higher resistance levels at $3.5 or even $4 in the near future. This impressive price increase indicates the growing market interest and the buying pressure may continue to increase further if the positive sentiment persists.

However, as indicated by the negative BBTrend indicator, this rally may be overextended and risk a reversal. If a bearish technical signal becomes price action, Pi could undergo a significant correction, initially dropping to the test support level of $1.7. If this level does not hold, the price could continue to drop to $1.42 when selling pressure increases. In the event of a strong downward trend, the Pi price could drop even further to $0.79, the lowest level in a year and a significant retreat from the current high.