Pi Network price continued to consolidate near its all-time low even after the developers announced a major upgrade. It was trading at $0.3500, a few points above the record low of $0.3167. This article highlights some of the top reasons why the Pi coin price is on the verge of a major move.
Technical Analysis Points to a Pi Network Price Surge
The most bullish catalyst for the Pi coin value is that it has strong contrarian chart formations. The chart below shows that the token has remained in a tight range in the past few months.
This consolidation is partly because it is in the accumulation stage of the Wyckoff Theory. This stage is characterized by sideways movement and low volumes. As this chart shows, the volume has been in a downward trajectory since May this year.
The accumulation also has low volatility as evidenced by the falling Average True Range (ATR), which has been in a downward trend in the past few months.
Meanwhile, the Pi coin price has formed the highly bullish double-bottom pattern at $0.3167. This pattern signals that bears are afraid of shorting below the double-bottom point. Its neckline is at $0.4646, its highest swing on August.
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Additionally, Pi Network price has formed a falling wedge pattern, which is characterized by two descending and converging trendlines. A bullish breakout usually happens when the two lines are about to converge.
Therefore, the most likely scenario is where the Pi coin token stages a strong bullish breakout. The initial price target will be the neckline at $0.4646, which is about 35% above the current level. On the flip side, a drop below the double-bottom point at $0.3167 will invalidate the bullish Pi forecast.
What Pi Coin Needs is a Catalyst
In most cases, when an asset is in the accumulation phase, all it needs is a catalyst that pushes it to the markup stage. A good example of this is the recent Cronos price surge, which was triggered by the partnership with Donald Trump. Similarly, the OKB price emerged from the accumulation after the token burn news.
It is unclear whether the upcoming Pi Network upgrade will be the catalyst it needs. One of the upgrades relates with the Stellar Network protocol 23 upgrade. Pi Network, which utilizes the Stellar Consensus, will upgrade from version 19 to 23, enabling additional functionality.
While important, the upgrade does not solve the major issues that affect the Pi Network coin price. Instead, the Pi news that would move the token has to do with the exchange listing and a token burn mechanism.
