Pi Network price crashed hard and reached an all-time low of $0.1523 on Monday, continuing a downward trajectory that started in February last year when it peaked at nearly $3. So, will the Pi Coin price rebound after the token formed a highly bullish chart pattern?
Pi Network Price Crashed and Formed Bullish Patterns
The daily timeframe chart shows that the Pi Coin price plunged to a record low of $0.1523. This retreat happened after the token formed a rising wedge pattern as we had predicted before. A wedge is a common reversal chart pattern.
The daily timeframe chart shows that the Pi Coin price has formed a double-bottom pattern at $0.1523 and a neckline at $0.2835. A double-bottom is one of the most common bullish reversal signs in technical analysis.
The token also formed a giant hammer candlestick pattern, which was made up of a long lower shadow and a small body. This pattern often leads to a rebound, as we saw on October 10 when it plunged to a record low. The hammer led to a rebound to a high of $0.2922.
Therefore, there is a likelihood the Pi Coin price will rebound briefly as bulls target the key resistance level at $0.2500.
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The bullish Pi Network token will become invalid if the price drops below the important support level at $0.1523. Dropping below that level will confirm the bearish outlook and point to more downside, potentially to the key support level at $0.100.
Pi Coin is Facing Major Headwinds
The Pi Network token crashed because of the broader performance of the crypto market, with Bitcoin, Ethereum, and XRP falling to the lowest levels in weeks.
These tokens plunged as geopolitical risks rose in the past few days. Donald Trump announced that he will impose new tariffs on key NATO allies because of his goal to acquire Greenland.
The network is also facing major headwinds as demand fades. Data shows that the 24-hour volume of the Pi token rose from a low of $7 million last week to over $16 million today. The rise in volume is a sign that many Pi Network holders have started to capitulate and sell.
Pi’s volume has dropped sharply in the past few weeks while the circulating supply has risen because of the ongoing token unlocks.
Data shows that there will be over 1.2 billion token unlocks in the next 12 months. More tokens will be unlocked since it has a circulating supply of 8.8 billion against a supply cap of 100 billion.
Pi Coin price has some potential catalysts ahead. For example, the Supreme Court may decide to end Donald Trump’s tariffs this week, while the Senate Banking Committee may make progress on the CLARITY Act.
In the long-term, however, Pi Network faces major challenges, including the token unlocks, lack of utility, centralization, and the general lack of demand.
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