Pi Network price experienced a remarkable surge, positioning it as one of the top-performing cryptocurrencies.
The Pi Network (PI) token surged over 45%, hitting a peak of $0.75, marking its highest value since March 31. This impressive rally coincided with a significant increase in trading volume, surpassing $1 billion—the highest recorded since early March.
This notable bounceback follows a substantial downward trend after the token reached a peak of $3 on February 26, resulting in a decline of over 75% and costing investors billions.
The drop in price is primarily attributed to the anticipated increase in supply due to the tokenomics of Pi Network. Projections indicate that the network will release millions of new tokens monthly, with a cumulative increase of 1.6 billion tokens expected over the next year. These token unlocks are likely to negatively impact existing investors as they dilute current holdings.
Investor concern has further been fueled by the absence of exchange listings since the mainnet launch, with major exchanges remaining reluctant to list the token. This situation limits access for millions of potential users.
Moreover, the Pi coin’s decline since February can be linked to sluggish growth in its ecosystem, as many developers have gravitated towards more established networks such as Berachain, Solana, and Avalanche.
Pi Network Price Gains Momentum Following Technical Signals
The recent recovery in Pi Network’s price can be traced back to specific technical indicators. A notable factor is the falling wedge pattern, which is recognized as a bullish reversal signal.
This pattern consists of two converging downward trendlines, with a bullish breakout occurring when these lines converge amid rising trading volume.
Additionally, the Pi Network has been exhibiting a bullish divergence pattern, seen when an oscillator rises in tandem with the price. Both the MACD and Bollinger Bands Trend indicator have shown steady upward movement.
As a result, the token could continue its ascent as bulls set their sights on the psychological milestone of $1, which is approximately 35% above its current level. However, a decline below this week’s lowest price would invalidate the optimistic outlook.
