Pi Network price Bollinger Bands point to an upcoming squeeze
The Pi Network price remains in a tight range this week as traders wait patiently for the next potential catalyst.
Pi Coin (PI), a popular cryptocurrency, was trading at $0.57 on Tuesday, down by 80% from its highest point this year. This decline has coincided with significantly lower demand, with a 24-hour volume of $47.5 million.
There are signs that the Pi Network price will go parabolic in the coming weeks. On Monday, crypto.news pointed to the Wyckoff Method, a 90-year-old theory identifying the phases that assets move over time.
The article noted that the coin is currently in the accumulation phase, which is characterized by low volume and sideways movement. This is typically followed by the markup phase, where a minor or major news event triggers increased demand from investors.
In Pi Network’s case, a potential spark could be an exchange listing by platforms such as HTX, Upbit, Binance, or Coinbase. Such a listing would likely drive more demand for the coin, as seen with other tokens following similar announcements.
Meanwhile, a popular trend indicator known as Bollinger Bands is signaling the potential for a strong move in the near term. This indicator comprises three lines: a simple moving average (the middle band) and upper and lower bands that represent standard deviations.
The Bollinger Bands for Pi Coin have narrowed to their tightest range since the mainnet launch. Historically, such compression often precedes a bullish or bearish breakout.
In Pi Network’s case, there are signs that it will make a bullish breakout since it has also formed a bullish divergence pattern. The Awesome Oscillator, an indicator that compares the recent market momentum by comparing two moving averages has been forming higher highs and is about to cross the zero line.
A bullish breakout could push Pi Network’s price to the psychological level of $1, representing a 74% gain from current levels. Conversely, a bearish breakout could see the price fall toward the $0.50 level.
