Pi Coin, the native cryptocurrency of the Pi Network, remains in a deep slumber despite the recent crypto market rally.
After hitting a year-to-date low, Pi Coin (PI) shows signs of a potential bullish reversal, forming rare chart patterns like a double-bottom and falling wedge. With low volatility suggesting an accumulation phase, the cryptocurrency could see a breakout if triggered by catalysts such as a tier-1 exchange listing, a token burn, or increased decentralization—though a drop below the double bottom would invalidate the bullish outlook.
Summary
- Pi Network price has formed a falling wedge pattern on the daily chart.
- Pi has also formed a double-bottom pattern at its lowest level this month.
- It has numerous catalysts that may push it higher in the near term.
Pi Network price technical analysis
Pi Coin was trading around $0.3567 at the last check on Sunday, Aug. 24 — significantly lower than its year-to-date high of $3. Its market cap and daily trading volume have slumped this year.
A closer look at the Pi Coin’s12-hour chart shows that it has formed two rare unique chart patterns. The first one is a double-bottom pattern at $0.3357, its lowest level on Aug. 1 and 19. This pattern has a neckline at $0.4660, its highest level on Aug. 10. In most cases, this pattern normally leads to a strong bullish breakout.
Pi Network, a mobile-focused blockchain that allows users to mine and transact directly through a smartphone app, has also formed another rare pattern known as a falling wedge. This pattern, illustrated in the chart below in red, is drawn by connecting the highest swings since June 26 and the lowest points since April this year. The two lines are nearing their confluence, which may trigger a big move ahead.
At the same time, the volume and volatility have slumped in the past few months. That could be a sign that it is in the accumulation phase of the Wyckoff Theory. The bullish Pi Network price forecast will become invalidated if it plunges below the double-bottom pattern.
Pi Coin price chart | Source: crypto.news
Potential catalysts for Pi Coin price
The recent OKB (OKB) price surge was triggered by OKX’s announcement that it would burn tokens worth billions. Its maximum supply has now dropped to 21 million.
Similarly, all Pi Network needs is a single catalyst, which could be a tier-1 exchange listing. Such a listing would be beneficial as it would make it available to millions of users. Pi is only available on a few tier-2 exchanges like Bitget and Gate.
Another potential catalyst for the Pi coin could be a token burn mechanism that reduces the total number of tokens. Fortunately, Pi has a low-risk approach, where it burns the billions of unclaimed Pi tokens.
Pi Network price would also go parabolic if there were full decentralization. Presently, the obscure Pi Foundation controls everything and holds over 90 billion tokens.
