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After a dramatic drop below the value area low, Pi Network has shown strong signs of recovery, bouncing from its swing low with aggressive demand. The buying wick printed on the latest daily candle confirms a strong reaction from what appears to be a maximum value zone.
Pi Network’s (PI) price action took a steep hit as it fell below the value area low and traded directly into a macro swing low support. However, this flush was met with immediate demand, leading to a sharp intraday recovery and a strong close back above high-timeframe support. The technical bounce was characterized by a prominent buying tail, a classic signature of value-based demand, now placing Pi in a potential reversal zone
Key technical points
- Break Below Value Area Low: Price dipped under the VAL and found strong buy-side pressure at the swing low region.
- Impressive Recovery Candle: The wick and close above support confirm aggressive market interest and demand.
- Reclaiming the Value Area Low: Sustained closes above this level confirm validation of the demand zone.
- Key Resistance at $0.65: Breaking this dynamic resistance would confirm a trend shift and open room for a move toward $0.80.
The drop below the value area low initially looked like a breakdown, but Pi Network’s price quickly reversed after reaching a key swing low, a high-interest liquidity pocket. The strong buying tail formed on the candle reflects not only rejection of lower prices but also signals the presence of maximum value buyers stepping into the market.
Price has now closed back above the high-timeframe support and is showing signs of acceptance above the value area low. This reclaim is critical. From a market profile perspective, acceptance back above the value area low after a failed breakdown often signals a trap and provides high-probability long setups.
The next obstacle for bulls is clear: dynamic resistance near $0.65. A clean break above this level would shift short-term market structure into a higher high formation, signaling early-stage reversal potential after the sharp sell-off. If Pi Network can breach this resistance and sustain momentum, the next magnet will likely be the $0.80 level, aligning with the upper boundary of the trading range and value area high.
What to expect in the coming price action
As long as Pi Network holds above the value area low and builds support on higher time frames, price remains positioned for a move toward $0.65 and then $0.80. The sharp bounce from maximum value confirms that buyers are active, and a structural reversal could be underway if dynamic resistance breaks.