After a notable dip below its value area low, Pi Network is showing signs of a strong recovery, rebounding from its swing low with significant buying activity. The buying wick on the latest daily candle highlights a robust reaction from what appears to be a critical value area, suggesting renewed interest in the cryptocurrency.

Pi Network’s Price Action: A Technical Overview

Recently, Pi Network’s price action experienced a sharp decline, breaking below its value area low and testing a macro swing low support. This drop was met with immediate and aggressive demand, resulting in a rapid intraday recovery. The price closed strongly above high-timeframe support, showcasing potential for a reversal. The technical bounce was marked by a prominent buying tail, a classic indicator of value-based demand, positioning Pi Network in a promising reversal zone.

Key Technical Points

  • Break Below Value Area Low: The price dipped under the value area low (VAL) but found significant buy-side pressure near the swing low region.
  • Strong Recovery Candle: The buying wick and close above support signals aggressive market interest and demand.
  • Reclaiming the Value Area Low: Sustained closes above this level confirm the validation of the demand zone.
  • Key Resistance at $0.65: Breaking this resistance could confirm a trend shift, potentially targeting the $0.80 level.

Market Profile Analysis: Signs of a Reversal

Initially, the drop below the value area low appeared to indicate a breakdown. However, Pi Network’s price quickly reversed after hitting a key swing low, which acted as a high-interest liquidity pocket. The strong buying tail on the candle not only rejected lower prices but also confirmed the presence of maximum value buyers entering the market.

Currently, the price has reclaimed its position above the high-timeframe support and is showing acceptance above the value area low. This reclaim is a critical technical signal. From a market profile perspective, acceptance back above the value area low after a failed breakdown often indicates a bear trap, presenting high-probability long opportunities for traders.

Next Resistance Levels to Watch

The next major hurdle for bulls is the dynamic resistance near $0.65. A clean break above this level would shift the short-term market structure into a higher-high formation, signaling the early stages of a potential reversal following the recent sell-off. Should Pi Network breach this resistance and maintain momentum, the next target is the $0.80 level, which aligns with the upper boundary of its trading range and the value area high.

What’s Next for Pi Network?

As long as Pi Network holds above the value area low and establishes a solid base on higher timeframes, it remains well-positioned for a move toward $0.65 and potentially $0.80. The sharp bounce from the maximum value zone confirms that buyers are actively participating in the market. If the dynamic resistance near $0.65 is broken, it could pave the way for a structural reversal, marking a potential shift in market sentiment.

Traders and investors should monitor Pi Network’s price closely as it approaches these key resistance levels, as they will likely determine the next phase of its market trajectory.

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