Pi crypto price eyes a breakout ahead of Consensus news
Pi Network price surged in a high-volume environment on Friday, mirroring the broader crypto market rally driven by Bitcoin and major altcoins.
Pi Coin (PI) token surged to an intraday high of $0.78 on Friday, its highest point since April 12, and 41% above its lowest level this month. The 24-hour volume soared by 170% to $353 million.
Two broader factors drove this rally. First, it surged as Bitcoin (BTC) and most altcoins soared, pushing the total crypto market cap to over $3.25 trillion. This surge was because of the ongoing Bitcoin accumulation and the rising hopes of trade deals between the US and other countries.
Second, the Pi Network community is anticipating a major ecosystem announcement next week. The timing aligns with the Consensus event in Toronto, where Pi Network’s founder Nikkolas Kokkalis is scheduled to speak.
This announcement could be a partnership with a large company, an ecosystem fund to incentivize developers, an exchange listing, or a token burn.
Rumors of a token burn gained traction after on-chain data revealed a transfer of 84 million PI tokens to an unspecified address. Some analysts suggest these tokens may have been moved to provide liquidity for a potential exchange listing.
A tier-1 exchange listing could serve as a major bullish catalyst. For example, the Pudgy Penguins (PENGU) price jumped by double digits on Friday after it was listed on Upbit, a top South Korean exchange.
A token burn would also lead to a parabolic move because it would offset the ongoing token unlocks. Data shows that over 1.45 billion Pi coins will be unlocked in the next twelve months, diluting existing holders. These unlocks have led to higher supplies and contributed to the recent crash.
Pi Network price analysis
The ongoing Pi Coin price surge is in line with what we predicted here and here. In those articles, we pointed to the narrowing spread of the three Bollinger Bands lines, and that it was in the accumulation phase of the Wyckoff Theory.
On the 8-hour chart, Pi Coin bottomed at $0.5577 on April 29 before rallying to $0.7810 on Friday. This pattern has formed a cup-and-handle structure, a widely followed bullish continuation pattern.
The depth of the cup is approximately 30%. A measured move from the breakout point suggests a potential upside target of $1.10, a 41% rally from current levels. This move could materialize ahead of the expected announcement on May 14.
