Pi Network Price Analysis: A Bullish Pattern Emerges Amidst Waning Demand
The Pi Network’s price has been stuck in a tight range, underperforming other altcoins in the ongoing crypto market rally. Despite this, a double bottom pattern has formed on the daily chart, suggesting a possible recovery in the coming weeks. The token’s volume has declined due to a lack of clear catalysts, with a mere $16 million in trading volume over the last 24 hours, according to data from CoinMarketCap.
The Pi Coin (PI) has been hovering around $0.2115, just above the crucial support level of $0.1952, which is the lowest level reached in October and December last year. This represents a significant decline of over 90% from its all-time high. The low volume can be attributed to the limited availability of the Pi Network on cryptocurrency exchanges, with only a handful of exchanges like OKX, Gate, and MEXC supporting it.
Token Unlocks and Ecosystem Development
Demand for the Pi token has remained weak due to ongoing token unlocks, with over 117 million tokens set to be unlocked later this month and 97 million next month. In the next 12 months, over 1.24 billion tokens will be unlocked, which may continue to put downward pressure on the price. Furthermore, the token is widely seen as a “ghost chain” with no significant activity, unlike other popular blockchain networks like Ethereum (ETH) and Solana (SOL), which have a wide range of decentralized applications (dApps) utilizing their tokens.
However, the developers of the Pi Network have been working to strengthen their ecosystem by launching a hackathon and investing in companies like CiDi Games and OpenMind. Additionally, they are planning to introduce smart contracts to the network by moving to Stellar and Rust smart contracts v23, as well as developing decentralized exchanges and automated market maker tools.
Pi Network Price Technical Analysis
The daily time chart shows that the Pi Coin price has formed a double bottom pattern, with the neckline at $0.2823. A bullish divergence pattern has also emerged, as the Percentage Price Oscillator and Relative Strength Index have continued to rise over the past few weeks. This suggests that the token may be poised for a rally, potentially reaching the key resistance level at $0.2500. However, a break below the key support level at $0.1952 would invalidate the bullish outlook.
Pi Coin price chart | Source: crypto.news
In conclusion, while the Pi Network’s price has been underperforming, the formation of a double bottom pattern and bullish divergence suggest a possible recovery in the coming weeks. However, the lack of clear catalysts and ongoing token unlocks may continue to weigh on the price. As the developers work to strengthen the ecosystem and introduce new features, investors will be watching closely to see if the Pi Network can regain momentum. For more information, visit https://crypto.news/pi-network-price-forms-a-bullish-pattern-despite-waning-demand/
