Pi Network coin price has plummeted in the past few weeks as demand waned, token unlocks jumped, and exchange inflows rose. It has plunged to $0.6500, down by 60% from its highest point in May. This article explains why technical indicators suggest a potential parabolic move is imminent.
Pi Network Coin Price Analysis
The 12-hour chart shows that the Pi coin price bottomed at $0.50 in late April and then surged to $1.6668 in May. This surge occurred ahead of Consensus Toronto, when the team announced it would deliver an update.
The announcement was about the launch of a $100 million ecosystem fund. Like other crypto funds, the goal is to incentivize developers to build on Pi. The venture will invest in companies developing applications in diverse fields, such as e-commerce and gaming.
If successful, it will create utility for Pi coin and ensure that it is not a ghost chain. It will also help reduce the tokens in circulation, as some of the collected fees will be burned.
Pi Network’s price crashed following the news because investors anticipated a major exchange listing. Others expected a strategy to burn more coins or a major partnership with a top company.
The chart below shows that the Pi Network coin price has crashed and hit a crucial support level. This support connects the lowest swing prices on April 5, 29, and May 31.
It has formed a slanted triple-bottom pattern, with its neckline at $0.16668, its highest point in May. Therefore, it is likely that the value of Pi will surge by 160% and hit this price target.
The bullish Pi prediction will remain in effect as long as the coin stays above the ascending trendline. A drop below that level will point to a crash to the all-time low of $0.40.
Potential Catalyst for Pi Coin Price Surge
To clarify, as we have written previously here and here, Pi faces significant challenges, particularly in terms of centralization and the absence of an ecosystem.
In addition to its technicals, Pi has two more catalysts that may propel its price higher in the coming weeks. First, the most important one is a major exchange listing by a company like Binance or Upbit. Such a listing would likely push it up by triple digits, as we have seen with tokens like Livepeer and Pocket Network recently.
The other potential catalyst is the upcoming second phase of migration that will reward pioneers. Although the exact date of this migration has not been announced, it is likely to occur in the coming months.
Finally, the Bitcoin price has several highly bullish catalysts, including rising demand and supply, which may push it higher in the long term. If this happens, there is a likelihood that it will rebound and reach a record high, leading to a surge among altcoins.
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