Pi Network price forms a bullish pattern despite waning demand
Pi Network price remained in a tight range on Monday as it lagged behind other altcoins during the ongoing crypto market rally.
- Pi Network price has formed a double-bottom pattern on the daily chart.
- This pattern points to a potential rebound in the coming weeks.
- The token’s volume has waned as it lacks a clear catalyst.
Pi Coin (PI) was stuck at $0.2115, a few points above the crucial support at $0.1952, its lowest level in October and December last year. It remains over 90% below its all-time high.
Pi token has retreated as demand remained weak. Data compiled by CoinMarketCap shows that the volume rose by 30% in the last 24 hours to just $16 million, a tiny amount for a coin worth over $1.7 billion.
One reason for the low volume is that the Pi Network is only available in a handful of cryptocurrency exchanges like OKX, Gate, and MEXC. It is not available in the most popular exchanges like Coinbase, Kraken, and Upbit.
The demand has remained weak because of the ongoing token unlocks. Data showed that the network will unlock over 117 million later this month and 97 million in the coming month. It will unlock over 1.24 billion tokens in the next 12 months.
The token has also remained on edge because it is widely seen as a ghost chain with no activity. Unlike Ethereum (ETH) and Solana (SOL), there are no popular dApps that are leveraging its token. The developers started to boost its ecosystem in the past few months by launching a hackathon and making investments in CiDi Games and in OpenMind.
Pi Network is also working to introduce smart contracts to its network by moving to Stellar’s v23 and Rust smart contracts. Also, the developers are working on decentralized exchanges and automated market maker tools.
Pi Network price technical analysis
The daily timeframe chart shows that the Pi Coin price bottomed at $0.1952, its lowest level in October and December last year. It has formed a double-bottom pattern whose neckline is at $0.2823.
The token has formed a bullish divergence pattern as the Percentage Price Oscillator and the Relative Strength Index have continued rising in the past few weeks.
Therefore, the token will likely rebound, and possibly hit the important resistance level at $0.2500. A drop below the key support level at $0.1952 will invalidate the bearish outlook.
