Pi Coin Set to Reverse? 3 Price Rise Models Indicate This Could Happen

Pi Coin has been disappointing traders for weeks, fluctuating in a narrow range with little momentum in either direction. Over the past seven days, the price of PI has only fallen by 0.5%, trading around $0.448. On the monthly time frame, the price of Pi Coin has fallen by 15%, while its three-month decline has reached 23%. The slow price fluctuations have put buyers and sellers in a stalemate. However, as July comes to an end, a change may be brewing beneath the surface. Volume-Based Confirmation: OBV Starts to Change OBV is showing initial signs of a bullish trend. From July 13 to July 22, the price of Pi Coin experienced a significant increase. The OBV indicator also reflects this trend with higher peaks. The synchronization between price and volume indicates that the price increase is not random; the actual buying volume has supported this move.

However, that strength still needs to be confirmed. For OBV to confirm the continuation of the trend, it must surpass the previous peak of -1.57 billion. A higher peak on OBV will signal sustainable accumulation, reinforcing the potential for a broader bullish reversal. As a volume-based indicator, OBV increases volume on green days and decreases volume on red days. When OBV trends upward with price, it confirms bullish sentiment. When OBV is flat or diverging, momentum is in doubt. Currently, OBV is accumulating, but has not yet broken out. The RSI Divergence of Pi Coin Matches the Uptrend of OBV The Relative Strength Index (RSI) is also showing positive signs. While the PI price continues to make lower highs, the RSI is on the rise. This bullish divergence indicates that selling pressure is weakening; a divergence between price and underlying strength.

However, for this signal to be reinforced, the RSI must surpass the threshold of 52. Closing above the threshold of 52 implies that the upward momentum is not only exploding; but also breaking out. Until then, the divergence remains promising, but unconfirmed. Surpassing the threshold of 52 means forming two higher peaks, indicating a trend reversal in the bullish direction. RSI tracks momentum by comparing recent gains with recent losses. Divergence between the RSI and price, especially near key support areas, often signals a trend reversal. Confirm Candle: Inverted Hammer Adds More Weight to the PI Price Reversal The bullish signal finally came from the candlestick pattern. On July 28, Pi Coin formed a green reversal candle, a candle with a small body near the bottom and a long upper wick, indicating a breakout or a failed resistance test. This pattern often appears after a downtrend, suggesting the potential for a bullish reversal, but only if confirmed by a subsequent strong candle. Although the buyers pushed the price up sharply during the session, they could not maintain the upward momentum. However, the closing price higher than the opening price (green candle) indicates some positive signals during the session. What is important now is the confirmation: a solid green candle that breaks through the top of the wick. Without this, it is only a potential reversal possibility, not a certain reversal.

This is not the first time Pi has exhibited this behavior; a similar setup on July 18 led to a strong price increase from $0.439 to $0.521 within four sessions. Where Will Pi Coin Go From Here? The trio of price increase, OBV rise, RSI divergence, and inverted hammer indicates the potential for a reversal. However, confirmation remains a key factor. If the price of Pi Coin exceeds the threshold of $0.47 (Fibonacci retracement level 0.5), the possibility of retesting the level of $0.52 is entirely feasible.

On the other hand, a close below $0.44, which is the Fib 0.786 extension level, would invalidate this bullish structure. Until then, traders should be cautious to confirm before positioning too aggressively.