Pi Network (PI) has recently garnered attention with an 8.78% rally, sparked by significant regulatory developments. While this short-term surge offers a glimmer of bullish momentum, the underlying technical analysis suggests a more cautious outlook for the cryptocurrency.
Regulatory Boost and Market Expansion
The primary catalyst for Pi Network's recent price appreciation is the release of its MiCA (Markets in Crypto-Assets) compliance whitepaper. This crucial document signals the protocol's commitment to operating transparently within the European Union's regulatory framework. The whitepaper highlights Pi Network's eco-friendly low energy footprint and its non-custodial Pi wallet, empowering users with full control over their assets. Compliance with MiCA regulations is a pivotal step, paving the way for potential expansion into European markets and enabling PI to trade on prominent exchanges like OKX Europe, which could significantly boost liquidity and broaden the project's global reach.
Technical Outlook Remains Cautious
Despite the recent rally, Pi Network's technical outlook on higher timeframes remains predominantly weak and bearish. The $0.258-$0.282 zone has proven to be a persistent resistance since late September, with previous attempts to break out being rejected. While the Relative Strength Index (RSI) indicates some bullish momentum by staying above 50, a noticeable lack of significant trading volume and a weak On-Balance Volume (OBV) suggest that overall selling pressure still dominates. Even a potential extension of the current 4-hour uptrend towards the $0.27 resistance faces considerable doubt, especially given the ongoing weakness of Bitcoin (BTC), which continues to negatively impact broader altcoin market sentiment. Traders are advised to prioritize higher timeframe trends, as they dictate longer-term market direction.
