Pi Coin price has been left behind by the ongoing crypto rally. It has slumped by over 11% from its highest point this month, even as Bitcoin and most altcoins have soared by double digits. Still, there are signs that the Pi Network price will go to the moon soon.
Pi Coin Price Crashes Despite the Crypto Rally
The Pi Coin price has remained under pressure this month despite the crypto rally that pushed the total market capitalization of all over $3.68 trillion. This performance is likely because of the ongoing token unlocks that are boosting the supply daily.
PiScan data shows that the network will unlock over 145 million tokens worth $67 million in the remaining part of the month. It will then unlock 138.5 million tokens in August, 117 million in September, and 93 million in October.
Further, the Pi Coin price has slumped as investors continued moving their tokens from exchanges. Exchange outflows jumped by over 1.4 million tokens in the last 24 hours.
Investors move their tokens from exchanges when they are selling them. This, in turn, leads to more selling pressure at a time when the supply from token unlocks is on an upward trajectory.
There are also concerns about Pi Network’s centralization as the Pi Foundation has a lot of power. Its wallets hold tokens worth over $33 billion, without any auditing. This centralization partially explains why many mainstream exchanges like Binance and Upbit are yet to list it.
Pi’s trading volume has also been low during this bull run. It had a 24-hour volume of $80 million, lower than other popular coins like Pepe, Shiba Inu, and Bonk.
Pi Network Price Technicals Point to a Surge Soon
The ongoing Pi Coin price crash could be the calm before the storm that could lead to a surge as the crypto rally accelerates. Its volume and volatility have plunged in the past few months. Falling volume and volatility is often a sign of slow accumulation.
The accumulation phase of the Wyckoff Theory then leads to a strong surge when it enters the markup phase. The markup phase is characterized by higher demand than supply.
Pi coin price has formed a double-bottom pattern at $0.4056 and the neckline at $1.6664, its highest point in May. Similarly, the token has formed a falling wedge chart pattern, a popular bullish reversal pattern. The two lines of the wedge are about to converge, which may lead to a breakout.
Further, the MACD indicator has formed a bullish divergence, a highly bullish pattern. Therefore, the token will likely have a bullish breakout to the key resistance point at $1. A move above that resistance point will signal more gains, potentially to $1.666.
On the flip side, a drop below the support at $0.4056, the double-bottom pattern, will invalidate the long term bullish Pi Network forecast.
Frequently Asked Questions (FAQs)
The token plunged because of the ongoing token unlocks and fears of centralization.
There are rising odds that the coin will surge in the coming weeks as it enters the markup phase of the Wyckoff Theory.
The next target price for the coin is bullish, with the next point to watch being at $1.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Source: https://coingape.com/markets/pi-coin-price-crashes-crypto-rally-analysis-predicts-recovery/