Pi Network price shakeout unfolds as hammer points to a rebound
Pi Network price plunged to a record low as the crypto market fell, erasing billions of dollars in value.
- Pi Network price crashed on Monday as the crypto market dipped.
- The crash could be a shakeout before a rebound starts.
- It has formed the highly bullish hammer candlestick pattern.
Pi Coin (PI) fell to a low of $0.1846, down by over 93% from its all-time high. It then rebounded and settled at $0.30 at press time.
Pi Network price hammer signals a bottom is in
The latest Pi Coin price crash could be a shakeout, which is a sharp drop designed to force weaker participants out of their positions before the market reverses to the upside.
On the positive side, this shakeout happened after the coin formed a falling wedge and a double-bottom pattern. A falling wedge occurs when an asset has two descending and converging trendlines.
A double-bottom pattern has two distinct lows and a neckline. In some instances, an asset will have a shakeout or a false breakout before the reversal happens.
The other positive is that the Pi Network price is slowly forming a hammer candlestick pattern. A hammer is made up of a small body and a long lower shadow.
In many cases, this pattern leads to a strong bullish reversal, potentially to the important resistance level at $0.4660, up about 55% from the current level. A drop below the low of the hammer at $0.1845 will invalidate the bullish view.
Pi Coin whale buying and TOKEN2049 event
The potential catalyst for the Pi Network price is the ongoing accumulation by an obscure whale. This whale has accumulated over 381 million tokens, currently worth over $112 million. His last purchase was over 781,000 tokens worth over $230,000.
The buyer could be someone with advance knowledge of developments in the near term. For example, it could be an exchange executive aware of a potential listing, or a Pi Network participant with knowledge of an upcoming announcement.
Another important catalyst for the Pi Network price is the upcoming TOKEN2049 event, where Dr. Chengdiao Fan, its co-founder, will speak. In her address, she will discuss Pi and its role in the Web3 industry. The token may rebound into that event.
