Why Is Pi Network Price Not Rising Despite Protocol 21 Success

Pi Network price had dropped by 1.2% at press time to trade at $0.164 with $15 million in trading volumes. The drop fails to mirror the rest of the crypto market, which traded in the green with the total market cap increasing by more than 4.5%. Pi Coin’s decline also comes despite a successful Protocol 21 upgrade and the team’s announcement of an upcoming V22 upgrade. However, a bullish divergence on the daily chart shifts the Pi Network price outlook and signals that a rebound could happen.

Pi Coin Team Announces Protocol 21 Success Amid Upcoming V22 Upgrade

In a recent X post, the Pi Network team has announced that the Protocol 21 upgrade was a success. This upgrade sought to make the network more stable and increase its performance and scalability.

It is important to note that the Protocol 21 upgrade was like a transition phase that would pave the way for other improvements. The team has now confirmed that the v22 upgrade is on the way, urging node operators to update their systems.

The v22 upgrade could improve the outlook for Pi Network price. This is because it will improve the smart contract capabilities of the network, paving the way for developers to join the network. If developers can start creating dApps on the network, it means that the utility for the token will improve, which supports a bullish long-term Pi Network price forecast.

Pi Network Price Outlook as Bullish Divergence Appears

Pi Network price has been on a persistent downtrend since March 13. Since then, Pi Coin has dropped from $0.271 to $0.164 at press time. The continuous downtrend for the last four weeks is now pushing the price to the 38.2% Fibonacci level of 38.2% at $0.159.

If Pi Coin drops below this Fib level, it might trigger a crash to the early February low of $0.13. The recent bearish crossover of the 50-day SMA below the 100-day SMA also confirms that bears are in control, and recovery might not happen soon.

However, the MFI index shows a glimmer of hope for bulls as it rises with a series of higher lows. When the MFI is rising while the Pi Network price is dropping, it shows a bullish divergence. It might also mean that the downtrend is losing steam, and buyers could be buying at lower prices.

If the bullish MFI results in an upward trend reversal, Pi Network price will first target the resistance level at the 61.8% Fib level at $0.177. A move above the 50-day SMA will also confirm that the short-term trend has turned bullish.