The Pi Network price has continued moving in a tight range as the hype surrounding the network in February evaporated. The token was trading at $0.60 on Monday morning, a level it has maintained in the past few weeks. This price is about 80% below its all-time high. The market cap has dropped from almost $19 billion to $4 billion today.
Reasons Why the Pi Network Price May Explode Higher in May
The Pi Network price crashed as demand for the token plunged and sellers continued to exit their positions.
Data shows that the average daily volume for Pi Coin has dropped to less than $70 million. At its peak, the network had a daily volume in the billions. Most of the daily Pi volume is happening on Bitget, one of the few exchanges that has listed the token. The other volume is on exchanges like OKX, MEXC, and Gate.io.
The falling Pi Network price demand has occurred as data shows that the token unlocks are continuing. Over 1.4 billion tokens will be unlocked in the next 12 months, equivalent to over 112 million monthly. Economics 101 suggests that falling demand and rising supply always lead to a falling price.
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Still, the Pi Network price is likely to explode higher in May. The most likely reason is that HTX, a top crypto exchange affiliated with Justin Sun, has been teasing Pi in the past few weeks, as the X post below shows. As we have seen with other tokens, a major exchange listing would be a big catalyst for the Pi Coin price.
Pi Network requires a Know Your Business (KYB) process, unlike other crypto projects before an exchange lists it. A good example of this is BitMart, which completed the KYB process last week and is now offering the coin after an initial pause. Banxa also completed the KYB.
Wyckoff Theory Suggests Pi Coin Price Will Surge
PI chart by TradingView
One of the most popular theories in technical analysis is the Wyckoff Method. This theory suggests that an asset goes through four stages: accumulation, markup, distribution, and markdown.
Pi Network seems to be in the accumulation phase, which is characterized by sideways movements and muted volumes. Therefore, if this theory comes into effect, it needs a spark or catalyst to cause a short squeeze.
A predicted Pi Network price surge could see it rise to $0.7932, its highest level in April this year. A move above that level will raise the possibility of the coin hitting the psychological point at $1.
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