In my readme on GitHub I have several images that are present there in my project\'s source tree which I reference successfully with directives like
.. image
PyPI will not read your package distributions for the image. You have to use the image's external link, for example:
.. image:: https://raw.githubusercontent.com/greyli/flask-share/master/images/demo.png
Here I use the image hosted by GitHub, the real demo is on PyPI.
P.S. To get the image's raw link on GitHub, right-click the image and choose Open image in new tab.