Pi Network is heading towards a rise to the sky as new demand emerges.

Last Saturday, the PI Network token (PI) closed above the upper boundary of the horizontal price channel, signaling the potential for a bullish breakout.

In the past 7 days, improved market sentiment has driven the bullish momentum of this altcoin.

Breakout from the sideways price channel – bullish signal

Data from the PI/USD daily chart shows that yesterday the price of PI broke above the upper boundary of the horizontal price channel – a zone that had restrained all growth efforts from August 2 to August 8.

PI horizontal channel | Source: TradingViewAs a result, PI recorded a bullish increase of 16% in just one trading session. Breaking through important resistance levels often reflects a positive sentiment returning and opens up the possibility of sustaining the bullish momentum.

For PI, this could be the starting point for a stronger bullish trend as investor confidence is reinforced and buying power continues to increase.

Strong buying force pushes PI higher

Today, PI is still maintaining its upward momentum. According to Santiment, the trading volume also surged nearly 150% in 24 hours, reaching 270 million USD.

Trading volume PI | Source: SantimentThe combination of bullish price and explosive trading volume indicates that the current trend has real strength, reducing the risk of a "fake breakout."

For PI, the volume skyrocketing reinforces the positive momentum and indicates that the bullish trend may continue in the coming time.

In addition, the two consecutive bullish sessions have pushed the PI price above the 20-day exponential moving average (EMA). At the present time, this important moving average forms a dynamic support level below the token price at $0.4038.

The 20-day EMA line of PI | Source: TradingViewThe 20-day EMA line measures the average price of an asset over the most recent 20 trading days. When the price of an asset trades above the 20-day EMA line, short-term bullish momentum is increasing as buying pressure dominates.

This confirms that the asset is in a bullish trend and may continue to strengthen.

Next target: $0.52

If buying momentum continues, PI may extend its bullish trend and attempt to break through the important resistance level at $0.4451. Successfully surpassing this resistance could push the price up to $0.5281.

Technical analysis of PI | Source: TradingViewOn the contrary, if traders start to take profits, the price of PI may return to the support level near $0.3773.

Vincent