The Pi Network has attracted significant attention in recent days, showcasing a remarkable price rebound. Over the past ten days, as the crypto market stabilizes, many investors have taken the opportunity to buy the dip, propelling Pi coin (PI) to a high of $0.755. This recent surge marks the highest price point since March 29, representing a stunning 92% increase from its lowest level this year.
Initially, the coin experienced a downturn, exacerbated by many pioneers—users who were mining before its mainnet launch—selling off their holdings. This downward spiral was further fueled by a lack of centralized exchange listings and ongoing concerns regarding the coin’s dilution. Notably, over 1.56 billion tokens are scheduled to be unlocked in the upcoming year, increasing the concern for potential dilution among investors.
Despite this backdrop, the Pi Network has shown signs of recovery, particularly in the context of broader market trends. Bitcoin (BTC), for example, has maintained stability above $80,000 even amidst fluctuations in the stock market and changes in the fear and greed index. The four-hour chart indicates a bullish trend as Pi coin surged after forming a falling wedge pattern—a technical setup indicating potential upward momentum.
However, caution is warranted as the coin has also formed a rising wedge pattern, a classic indicator of potential bearish trends in technical analysis. Furthermore, with the Percentage Price Oscillator nearing a bearish crossover and the Relative Strength Index showing a downward trend, investors should remain vigilant. If Pi Network’s price sustains a significant downturn, the next critical support level may fall as low as $0.3979, approximately 47% below current levels.
To invalidate this bearish outlook, a breakout above the first resistance at $0.8610 would be necessary, opening the way for a potential rise to the psychologically important $1 mark, about 32% above the current price. As the Pi Network evolves, investors must closely monitor these patterns and trends to navigate the complexities of the cryptocurrency market.
