Technical Analysis Shows Double-Bottom Pattern Formation

TLDR

• Pi Network secured a major listing on BTCC Exchange, sparking market optimism
• Token unlocks will hit monthly low in April (124.32 million tokens), potentially reducing selling pressure
• Technical analysis shows a possible double-bottom pattern and bullish divergence indicators
• PCM Wallet app received significant upgrades improving user experience and transaction capabilities
• Despite recent price declines, some analysts predict potential recovery to $1 or higher based on chart patterns

Pi Network has recently secured a major listing on BTCC Exchange, sparking renewed optimism among investors. This development comes at a time when the cryptocurrency has experienced price challenges, falling to as low as $0.68 in the last 24 hours.

The Pi coin price has struggled over the past few weeks, with a 22% drop in the last seven days and a 60% decline over the monthly timeframe. Today’s price shows a modest 1% recovery to around $0.7184, with a 24-hour trading range between $0.6806 and $0.7535.

Market analysts have identified several factors behind Pi’s recent price slump. The most important factor was the massive token unlocks in March, which increased supply and put downward pressure on price.

The lack of major announcements from the Pi Core Team has also affected market sentiment. Particularly, the absence of updates regarding a potential Binance listing has left many investors uncertain about near-term prospects.

April may bring better news for Pi Network holders. According to PiScan data, token unlocks will reach their lowest point in April, with only 124.32 million tokens scheduled for release.

This represents a much smaller amount compared to upcoming months. May will see 182.37 million tokens unlocked, followed by 222.68 million in June, 233.37 million in July, and 132.52 million in August.

The daily token unlocks between April 7 and April 11 will be particularly low at around 1.5 million tokens per day. This reduced rate of new tokens entering the market could help ease selling pressure.

Technical Analysis

Technical analysis of Pi Network’s price chart reveals some causes for optimism. The four-hour chart shows signs of a double-bottom pattern forming at $0.7663, which is often considered a bullish reversal indicator.

Further technical indicators suggest potential upward movement. Pi has settled at the 78.60% Fibonacci Retracement level, while oscillators like the Relative Strength Index (RSI) and MACD have formed a bullish divergence pattern.

Analyst Crypto Jex has shared a positive outlook for Pi Coin. Jex suggests Pi Network is forming an ABC Recovery Pattern within a key accumulation zone, with targets of $0.95-$1.00, $1.30-$1.50, and potentially $1.80+ upon trend confirmation.

Another analyst, DEXWireNews, has identified a falling broadening wedge pattern on Pi’s price chart. If this pattern holds true, they suggest Pi could reach as high as $2.52 in April, representing a 282% increase from current levels.

The RSI indicator shows near oversold conditions for Pi coin, suggesting the token may be undervalued at current prices. Additionally, the volume histogram displays green conditions, indicating increasing buying interest.

On the development front, the PCM Wallet app has received major upgrades. The wallet has been rebuilt using Flutter, streamlining the user interface and making Pi transactions more efficient.

Two key features have been added to the PCM Wallet. The first is the implementation of muxed accounts, allowing users to deposit and manage their tokens more effectively.

The second feature enables Pi token withdrawals, though currently with a 200 Pi limit. Pichain Global has clarified that this limit is temporary to ensure a stable launch for the wallet.

The PCM wallet functions as a non-custodial wallet, allowing for global transactions and payments with improved efficiency. Security remains a priority, safely connecting users to the PiChain ecosystem.

Pi Network currently stands as the 29th largest cryptocurrency by market capitalization, valued at $5.163 billion. The token trades on 20 exchanges with a daily trading volume of $159 million.

One factor that could boost Pi Network’s value in the future is increasing exchange adoption. With its substantial market cap and trading volume, more exchanges may consider listing Pi in the coming months.

There has also been speculation about a potential token burn. Such a move would reduce the total supply of Pi coins, potentially increasing the value of remaining tokens if demand remains constant or grows.

The most immediate candidates for burning would be unmigrated mined tokens. Removing these from future circulation could significantly reduce the total supply from its current maximum of 100 billion tokens.

Currently, there are 6.7 billion Pi coins in circulation. As the ecosystem’s applications become more popular, Pi Network may introduce fee burns, further reducing supply over time.

The recent PCM Wallet upgrades may increase Pi’s utility and adoption. By making the token more useful for everyday transactions, these improvements could strengthen the ecosystem and increase long-term investment appeal.

While near-term price movements remain uncertain, the combination of reduced token unlocks, technical indicators, and ecosystem developments provide reasons for cautious optimism among Pi Network supporters.