Pi Network (PI) is trading above $0.20 at press time on Friday, with considerable price volatility compared to broader market volatility. Amid the struggle to hold on to gains made last weekend, net outflows from the Pi Network’s centralized exchanges (CEX) reserves indicated a dominance of buying, indicating supply pressure coming from off-exchange transactions.
On-exchange demand remains as supply remains tight due to external pressure
The short list of CEX that lists Pi Network’s PI token has seen an increase in demand, while selling pressure remains. PiScan data shows a net outflow of 2.58 million PI tokens from CEX’s wallet balance over the last 24 hours. Typically, outflows in exchange reserves indicate a reduction in selling pressure.
CEX Wallet Balance. Source: Piscan
However, as FXStreet previously noted, most PI tokens remain off exchanges, making supply flows difficult to track. Nevertheless, the ongoing correction is largely driven by off-exchange selling, as wallet balances on CEXs rarely record inflows.
Technical Viewpoint: Will Pi Network Bullish As Selling Pressure Eases?
After three consecutive days of losses, Pi Network is up 1% at press time on Friday. Holding PI token above the psychological support level of $0.20 provides a buffer phase between the risks of a sharp correction.
The mobile mining cryptocurrency maintains a sideways trend from $0.2295 to $0.1996 within the October 10 candle. A decisive close below $0.1996 could test the S1 pivot point level at $0.1731.
The moving average convergence divergence (MACD) coincides with its signal line, indicating a decline in selling pressure. A possible crossover above its signal line will show an increase in bullish momentum.
The Relative Strength Index (RSI) reads 29, which is recovering within the oversold zone, indicating a potential reversal as overhead pressure nears saturation.
PI/USDT daily price chart.
Looking above, the PI needs to exceed the $0.2295 level to consolidate the recovery at the center pivot point level at $0.2755.
