Pi Network Coin price bounced back in the past two days, reaching a high of $0.1625, up sharply from the year-to-date low of $0.1302. Its rebound happened in a high-volume environment, with the daily figure soaring to over $32 million. This article explores some of the top reasons why Pi Coin price is soaring.
Reasons Why Pi Network Coin is Soaring
There are four main reasons why the Pi Network Coin price is soaring today. First, the rebound mirrors that of other cryptocurrencies, including popular names like Bitcoin, Ethereum, and Humanity Protocol, that jumped after the US released an encouraging inflation report.
A report by the Bureau of Labor Statistics (BLS) showed that the headline Consumer Price Index (CPI) dropped from 2.6% in December to 2.4% in January, lower than the median estimate of 2.5%. Core inflation remained unchanged at 2.5%, raising the possibility that the Federal Reserve will deliver three interest rate cuts this year.
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Second, Pi Coin price rose as investors waited for the upcoming network upgrades for node operators. In a statement, the team noted that the mainnet was going through a series of upgrades, with the deadline for the first of them being on February 15. These upgrades are likely associated with the migration from Protocol 19 to 22 of the Stellar network.
Third, there are still hope that Pi Network will be listed by at least one major crypto exchange soon. Kraken, a top American company, has already listed it on the listing roadmap for the year. While this listing does not guarantee a listing, it raises the possibility of an eventual listing, potentially as the first year anniversary of its mainnet launch nears.
Additionally, the ongoing Pi Network rally could be a dead-cat bounce, which is a brief rebound that happens when an asset is in a strong downward trend. It is usually brief and leads to more downside over time.
Pi Coin Price Technical Analysis
The daily timeframe chart shows that the Pi Coin price has been in a strong downward trend in the past few months, reaching a record low of $0.1280 this week. It has now retested the important resistance level at $0.1537, where it formed a double-bottom pattern.
The coin remains below all moving averages and the Supertrend indicator. All these are signs that the bearish outlook remains.
Therefore, the most likely scenario is where the token remains in a bear market, and possibly retests the all-time low of $0.1280. A drop below that level will point to more downside, potentially to the key point at $0.10.
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