The Pi Coin price continued to waver this week as demand waned and the crypto market bull run stalled. The Pi Network token was trading at $0.44 on Friday, a few points above the key support level of $0.40. It has slumped by over 85% from its all-time high.
Why Pi Coin Price Value Will Rebound
The Pi Network token has remained in a tight range in the past few weeks, even as the crypto bull run continued. This bull run pushed Bitcoin to a record high and most altcoins up by double digits.
The value of Pi remained steady despite some important ecosystem news. For example, the developers ventured into the booming artificial intelligence (AI) industry by launching AI Studio, which has attracted thousands of users.
In a recent report, the developers noted that thousands of creators have now launched their AI chatbots. Of course, there are concerns about the utility of most of these applications and the value they will create for the ecosystem.
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There are three main reasons why the ongoing Pi Coin price may be calm before an eventual comeback. First, there is a slim chance that a major tier-1 exchange will list Pi, a move that will trigger a parabolic move as many other tokens have done in the past.
Second, there is a chance that some applications in the ecosystem will go mainstream over time. For example, FruityPi, a game on the network, has become highly popular among community members.
Third, the recently launched Pi Directory Staking is becoming popular as users stake millions of tokens to support the apps they love.
Pi Network Price Analysis
The other main reason why the Pi coin price value may rebound is that the token is in the accumulation phase of the Wyckoff Theory. This phase is generally characterized by low volume and sideways price movements. It is then followed by the markup phase, where an asset goes parabolic.
At the same time, the three lines of the Bollinger Bands have continued to narrow this month, which will likely lead to an eventual squeeze. A notable example of this is what happened in May, when the Pi coin surged by over 200%.
Further, the token has formed a giant double-bottom pattern at $0.4055, its lowest swing in April and June. It also formed a falling wedge pattern, pointing to an eventual rebound in the coming days. A surge will likely push it to the psychological point at $1, followed by the key resistance at $1.665.
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