Pi Rallies 5% Amid Market Reassurances, But Momentum Wanes

Pi (PI) has recently experienced a rally, but technical indicators suggest that the positive momentum may be waning. The cryptocurrency has seen a nearly 5% increase in the past day, currently trading at $0.6683. This surge comes amidst broader market reassurances from President Trump and White House officials regarding tariffs and monetary policy.

Despite this recent uptick, PI is still trading 77.6% below its all-time high of $2.98, which it reached right after the public mainnet launch. The network's decision to implement Know Your Customer (KYC) protocols for users to claim PI tokens has been a significant factor in this decline. This requirement goes against one of the core principles of blockchain technology, which is decentralization and anonymity.

Top crypto exchanges like Binance and Coinbase have refused to list PI due to the KYC requirements, which has limited the token's liquidity and weakened its near-term prospects. Even though PI has shown weekly gains of 8.1%, technical indicators point to a potential resumption of the downtrend as positive momentum appears to be losing steam.

Momentum readings indicate that PI could be due for a pullback. The hourly price action shows that Pi recently broke above a symmetrical triangle with strong volumes, surging to a key area of resistance around $0.67. The price has climbed above its 21-day exponential moving average (EMA), but momentum indicators suggest that the rally may be entering a phase of exhaustion.

The Relative Strength Index (RSI) recently touched overbought levels and is now on a downtrend. The oscillator made a bearish cross below the signal line, typically interpreted as a sell signal. Additionally, the MACD’s histogram shows steadily decreasing positive momentum readings as the price approached this key resistance area.

Traders should approach this rally with caution, as technical indicators seem to be anticipating a pullback. The $0.67 level has now turned into support alongside the 21-day EMA. As PI continues to face reputation issues and weak momentum, Bitcoin has surged by more than 11% in the past week, reigniting bullish sentiment in the broader market.