Pi Network Coin price is in a strong bull run this week, supported by the upcoming Kraken listing and Pi Day event. It jumped to $0.30, up by over 100% from the year-to-date low. Still, there is a risk the coin could see a minor pullback in the coming days.
Buy the Rumor, Sell the News
A popular concept in the financial markets is buying assets ahead of a major event and selling them when it occurs. A good example of this is what happened recently when the Iran war started. Instead of falling, Bitcoin and other cryptocurrencies rose after the war started, as investors had priced it in.
The same could happen with Pi Network in the next few days. That’s because the token has soared ahead of key events coming up soon. For example, the token rose as investors waited for the Kraken listing, which is now scheduled for today, March 13.
This listing is important as it will make it available in the United States, where most of its clients are. It may also prompt other companies, such as Coinbase, Upbit, and Binance, to list it in the coming months.
READ MORE: Will the Crypto Market Crash or Rally as Iran War Takes a New Turn?
The token has also jumped ahead of the upcoming Pi Day event on Saturday, which coincides with the Pi value of 3.14. Traders are anticipating some major announcements on this day.
The other reasons behind the ongoing Pi Coin rally include ongoing whale accumulation, an ongoing network upgrade, an upcoming validator rewards distribution, and the integration of artificial intelligence (AI) into its platform.
Therefore, while all these are bullish catalysts for Pi Network, it is possible that it will retreat soon as investors sell the news and wait for the next catalyst.
Pi Network Price Has Become Overbought
Technical analysis also suggests the coin may retreat in the coming days, as it has become highly overbought. The two lines of the Stochastic Oscillator have moved to the overbought level.
Similarly, the Relative Strength Index (RSI) moved to the overbought level of 76. The MACD indicator has also reached its highest level this year.
The token has also formed an evening star candlestick pattern, characterized by a small body and a small upper shadow. This pattern often leads to a bearish reversal.
The coin is also in the first phase of the Elliot Wave pattern, meaning that it may retreat as it enters the second bearish one. If this happens, the next key target to watch will be at $0.20, and then the uptrend will resume.
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