Pi Network Coin price has rebounded over 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 the 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 such as Bitcoin, Ethereum, and Humanity Protocol, which 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) fell from 2.6% in December to 2.4% in January, below 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, the Pi Coin price rose as investors awaited upcoming network upgrades for node operators. In a statement, the team noted that the mainnet was undergoing a series of upgrades, with the deadline for the first of these set for February 15. These upgrades are likely associated with the migration from Protocol 19 to 22 of the Stellar network.
Third, there remains hope that Pi Network will be listed by at least one major cryptocurrency exchange soon. Kraken, a major American company, has already included it on its listing roadmap for the year. While this listing does not guarantee a listing, it raises the possibility of an eventual listing, particularly as the first-year anniversary of its mainnet launch approaches.
Additionally, the ongoing Pi Network rally could be a dead-cat bounce, a brief rebound that occurs 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 indicates that the Pi Coin price has been in a pronounced downward trend over the past few months, reaching a record low of $0.1280 this week. It has now retested the key 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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