Pi Coin price lags behind the crypto rally, but analysts say a rebound could be near. Here’s why the token has underperformed and what’s next.
The current cryptocurrency boom has overtaken the price of Pi Coin.
While Bitcoin and most altcoins have surged by double digits, it has fallen by more than 11% from its peak this month.
Nevertheless, there are indications that the price of Pi Network will shortly soar.
Despite Crypto Rally, Pi Coin Price Crashes
Despite the crypto surge that increased the entire market capitalization to over $3.68 trillion, Pi Coin price has continued to be under pressure this month.
The continuous token, which unlocks an increase in the supply daily, is probably the source of this performance.
According to PiScan data, during the remaining month, the network will unlock more than 145 million tokens valued at $67 million.
In August, 117 million tokens will be unlocked, followed by 93 million in October and 138.5 million.
Additionally, as investors kept withdrawing their tokens from exchanges, the price of the Pi Coin fell.
In the past day, exchange outflows have increased by more than 1.4 million tokens.
When selling tokens, investors remove them from exchanges.
At a time when the supply from token unlocks is increasing, this results in increased selling pressure.
Because the Pi Foundation is so powerful, there are also worries regarding the centralization of the Pi Network.
Its wallets contain tokens valued at over $33 billion without any audits.
This centralization helps to explain why it hasn’t been listed on many popular exchanges like Binance and Upbit yet.
During this bull run, Pi’s trading volume has likewise been low.
Compared to well-known currencies like Pepe, Shiba Inu, and Bonk, its 24-hour volume was lower at $80 million.
Pi Network Price Technicals Indicate Upcoming Increase
As the cryptocurrency rally picks up speed, the current Pi Coin price collapse can be the quiet before the storm, which could result in a rise.
It has experienced a sharp decline in volume and volatility in recent months. Slow buildup is frequently indicated by declining volume and volatility.
The Wyckoff Theory’s accumulation phase culminates in a powerful surge when it moves into the markup phase.
Demand is greater than supply during the markup period.
The price of the Pi coin has created a double-bottom pattern, peaking in May at $0.4056 and necklining at $1.6664.
The token has also generated a typical bullish reversal pattern, the falling wedge chart pattern.
There could be a breakout when the wedge’s two lines approach convergence.
Additionally, a bullish divergence—a very bullish pattern—has been generated by the MACD indicator.
As a result, a bullish breakout to the crucial resistance level at $1 is probably for the cryptocurrency.
A move above that resistance level will indicate more advances, maybe reaching $1.666.
Conversely, a decline below the double-bottom pattern’s support at $0.4056 will render the long-term bullish Pi Network prediction erroneous.
