Pi Network price eyes a 150% breakout as a rare pattern forms
Pi Network price remains under pressure and is hovering near its all-time low as demand remains scarce and supply continues rising.
- Pi Network price has crashed since its mainnet launch in February this year.
- Increased supply, a less vibrant ecosystem, and a lack of an exchange listing have contributed.
- The token could be on the verge of a strong bullish breakout as a falling wedge pattern forms.
Pi Coin (PI) token has plunged by over 85% from its all-time high in February, turning one of the most popular cryptocurrencies into the worst laggard.
Several factors have contributed to the ongoing Pi Network price crash. First, its supply has continued to rise after its mainnet launch in February, thanks to daily token unlocks. PiScan data shows that over 1.2 billion tokens worth $437 million will be unlocked in the next 12 months.
Second, Pi Network has not lived up to the expectations that the developers promoted before the mainnet launch. For one, it does not have an active ecosystem, and it is not being accepted by many retailers.
Measures to boost ecosystem growth, such as the launch of the Pi AI Studio and the Pi App Studio, have not paid off as no popular apps have been launched so far. Notably, the $100 million Pi Network Venture fund has not made any investments, despite being launched many months ago.
Third, most tier-1 exchanges have stayed away from listing the Pi token. This is likely because of its lack of transparency about the obscure Pi Foundation that controls billions of tokens, and fear that Pi could be a scam.
The implication of all this is that Pi Network coin is not available to millions of crypto investors. It is not listed on Upbit, which is used by millions of South Koreans, and Coinbase, which millions of Americans use.
Pi Network price chart points to a surge
Technicals suggest the ongoing Pi Network price crash could be nearing its end after it formed a highly bullish falling wedge chart pattern on the daily chart. The wedge is characterized by two descending and converging trendlines.
A bullish breakout normally happens when these two lines are about to converge, which has already happened.
Another bullish catalyst is that the three lines of the Bollinger Bands are about to converge as the spread narrows. This performance is usually a sign that an asset has little volatility, which may lead to a strong bullish breakout.
If this happens, the Pi Coin price will likely have a strong bullish breakout, potentially to the resistance level at $1, which is about 150% above the current level.
