Pi Network Coin continues to underperform the broader market this month. While it has jumped by 25% from its lowest point this month, it remains significantly lower than its all-time high. Its market cap has dropped from nearly $20 billion in February to below $4 billion today.
This article explores the contrarian case for the Pi coin and the three main reasons why it may rebound.
Pi Network Price to Benefit From the Crypto Bull Run
The first main reason why the Pi Network may rebound is that we are in a crypto market bull run. Bitcoin price has already jumped to an all-time high, while the market cap of all tokens has jumped to over $4.3 trillion.
The ongoing crypto rally is being driven by the rising hopes that the Federal Reserve will cut interest rates soon. Additionally, market participants are optimistic due to the ongoing inflows of Bitcoin and Ethereum ETFs.
Historically, crypto bull runs benefit most coins, which means that Pi could be a major beneficiary because of its low price.
READ MORE: Pepe Price Alert: At Risk as Whales Buy 440B Coins and ETH Surges
Pi Coin Price Has Formed Bullish Patterns
The other contrarian case for the Pi Network is that it has formed bullish chart patterns, as we have written here and here. It has formed a triple-bottom pattern at $0.40 and a neckline at $1.6643. This is one of the most common bullish reversal patterns in technical analysis.
Pi Coin price has formed a falling wedge pattern, which is shown in black below. The two lines of the wedge have nearly converged, and the price has moved above the upper side.
Therefore, the token will likely have a strong bullish breakout, with the next important target being $1, which is up by 154% above the current level.
Pi Network price chart | Source: TradingView
Hopes of a Pi Token Exchange Listing Remain
In a recent article, we wrote about why top exchanges like Coinbase, Upbit, and Binance have not listed it yet. The coin is only listed in a handful of exchanges, with OKX being the only tier-1 player.
The reality, however, there is still a slim chance that one of the major exchanges will list it in the coming months. Such a move would lead to triple-digit gains once it is announced, as some less popular tokens did when they were listed.
Summary
Pi Network price has plunged this year, and sentiment among investors is negative. Investors are justified in being negative because of its regular unlocks, centralization, and the fact that it is almost a ghost chain. Still, the three reasons mentioned mean that it may stage a strong breakout.
READ MORE: Altcoin Season: Why are Crypto Like Chainlink, Polkadot, Cardano Prices Going Up?
