Pi Network price suffered a big reversal on Friday and Saturday, making it the worst-performing top-100 coin. It dropped to $0.2085, down by 30% from its highest point this week. The retreat happened even after it got listed on Kraken on Friday.
Reasons Why Pi Coin is Falling
There are three main reasons why the Pi Network price dropped sharply after the Kraken listing. First, as we wrote in this report, the decline is mostly because the Kraken listing was priced in. As a result, the decline is due to a phenomenon known as “buying the rumor and selling the news.”
It happens when financial assets jump before a major event and then drop after it. It is also common for an asset to fall before bad news happens and then rise when it occurs.
The same dynamic explains why the coin pulled back on Pi Day. It surged as investors anticipated the commemoration, only to drop after the event. Now the question on everyone’s mind is simple: what comes next?
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Second, the Pi Network price is falling as investors book profits, as it was one of the best-performing coins this week. At its peak on Friday, it was up 126% from its February low this year, beating popular tokens like Bitcoin and Solana.
Third, the coin had a weak reception on Kraken. Data compiled by CoinGecko shows that the platform’s volume was just $451,722. In contrast, the total volume in exchanges rose to $155 million in the last 24 hours.
Pi Network Price Prediction: Technical Analysis
The daily timeframe chart shows that the Pi Coin price surged to a multi-month high of $0.300, as BanklessTimes predicted here. It then suffered a big reversal, also as we predicted.
A closer look shows it has formed a bearish engulfing pattern, which occurs when a large bearish candle follows a smaller bullish one. This pattern often leads to a bearish breakout.
On the positive side, there are signs that the coin has entered the second phase of the Elliot Wave pattern, suggesting the bullish third phase may follow. If this happens, the next key target to watch will be this week’s high of $0.300, followed by the psychological level at $0.50.
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