Pi Network price has bounced back by double digits in the past few days. It jumped to $0.2931 on Monday, its highest level since September 22. It was up by over 90% between its lowest point and its highest level this month.
Why the Pi Network Price Jumped
The Pi Network price has jumped over the past few days, as we earlier predicted. This prediction was based on technicals, as the coin had formed a falling wedge and a bullish divergence pattern on the daily chart.
Pi Coin price also jumped as investors bought the dip, as it had plunged by over 90% from its highest point since the mainnet launch in February.
It is common for investors to buy the dip whenever an asset plunges, especially during a crypto market rally. This rally was sparked by the soft inflation data and the potential deal between the US and China.
The rebound was also likely because of market manipulation, as some analysts noted. Dr. Altcoin, an analyst who has written a book on Pi, noted that large volumes were being transferred from exchanges like Gate and OKX.
Pi may also be rising after developers made major announcements about the KYC verification process and the DEX and AMM testnet.
READ MORE: Is Pi Network Dead Now and Can it be Saved?
Pi Coin Price Jump May Be a Bull Trap
Still, there is a risk that the Pi Network price rally was a dead-cat bounce (DCB), also known as a bull trap. A DCB is a temporary rebound that occurs when an asset is falling.
This DCB is commonly known as a bull trap because it deceives retail traders into entering a long position, only for prices to resume the downtrend.
The main reason this may be a bull trap is that Pi Network has numerous issues to address. It has yet to publish a detailed roadmap, has no utility, and is highly centralized.
No major exchange has listed it since the mainnet launch, with popular names like Binance and Coinbase remaining on the sidelines.
At the same time, Pi Network has seen many pioneers sell their tokens, and most of them will never return. Major developers in the crypto industry, such as Aave and Uniswap, have also shunned it.
Most notably, this is not the first time that market manipulation has happened. The most important one happened in May, pushing it up by over 200%, only for the price to implode.
READ MORE: XRP Price Prediction: Top Catalysts for a Ripple Surge
