Pi Coin price goes parabolic as wedge pattern activates
Pi Network pi 9.63% The Pi Network token surged more than 45%, hitting $0.75, its highest level since March 31. Its volume reached over $1 billion, the biggest level since early March, causing this spike.
Pi peaked on February 26 at $3 and has been in a steep decline ever since. Pioneers and other investors have lost billions of dollars as a result of the more than 75% decline from that level.
Due to its tokenomics, the incoming supply is primarily to blame for this crash. According to data, millions of new tokens will be released by the network every month. Over the course of the following 12 months, the supply will increase by 1.6 billion. Because they dilute current investors, token unlocking is a sign of bearishness.
Due to investors’ continued concerns about the absence of exchange listings after the mainnet launch, Pi Network’s price has also fallen. Millions of users cannot access it since the majority of tier-1 exchanges, including Coinbase, Binance, and Kraken, have not listed it.
Additionally, the lackluster ecosystem growth of Pi currency has caused it to plummet since February, as the majority of developers have chosen to use popular networks like Berachain, Solana, and Avalanche.
Pi Coin price rises
As crypto.news has previously noted, the technicals of the Pi currency were the reason for the current price recovery. A falling wedge pattern, a common bullish reversal indicator, was the most significant.
Two trendlines that are descending and convergent define this pattern. When the volume is constantly increasing and these two lines are close to their confluence, a bullish breakout occurs.
Additionally, Pi Network has been developing a bullish divergence pattern, which occurs when an oscillator increases in tandem with a price increase. In this instance, both the Bollinger Bands Trend indicator and the MACD have been rising gradually.
As bulls aim for the psychological landmark at $1, which is roughly 35% above the present level, the token can thus continue to rise. The positive forecast will be rendered meaningless if the price falls below this week’s lowest level.
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