Pi Network's Value Surges by 10%: Is a Rebound or Has the Tide Turned for PI?
The recent rally in the Pi Network's native token (PI) has left investors questioning its sustainability, with many analysts suggesting it could be a temporary bounce rather than a lasting recovery.
Key analysis points include:
- The PI token is currently testing critical support around $0.38, after a significant 14.20% weekly drop that underperformed the broader crypto market. This suggests selling pressure remains strong.
- Daily trading volume has declined by 46%, indicating reduced market participation and liquidity, which weakens price momentum.
- A bullish engulfing candlestick pattern on the weekly chart hints at a potential short-term rebound toward the resistance zone near $0.40–$0.41. Breaking through this resistance could push prices modestly higher to around $0.50–$0.60 by late August, but this is conditional.
- Analysts caution that failure to hold the $0.38 support could lead to a further decline toward $0.30.
- The token price is consolidating within a falling channel pattern, and although a breakout rally is possible, it depends heavily on broader market dynamics, including the onset of a potential altcoin season and improved investor sentiment toward risky tokens like PI.
- Long-term recovery hinges on underlying fundamental catalysts such as progress in mainnet development and real-world adoption of Pi’s mobile platform, which remain uncertain amid token unlocks introducing liquidity risks.
The recent price rally has seen the PI token climb from its all-time low of under $0.35, marking a 20% increase from its all-time low of $0.335 just three days ago. However, the decrease in the number of daily token unlocks should ease selling pressure on the PI asset, at least theoretically.
Investors are advised to approach the current rally with caution, as it exhibits characteristics of a dead cat bounce—a brief recovery following a steep decline, lacking strong market conviction or volume to sustain a lasting recovery. A decisive breakout above $0.41 with increasing volume would be needed to confirm a more durable uptrend. Until then, price consolidation near $0.38–$0.40 accompanied by low volume points to ongoing volatility and risk.
For those interested in trading cryptocurrencies, Binance offers a limited-time exclusive welcome offer of $600 to new registrations, while Bybit offers a $500 free position on any coin. The PI Network can be found on popular social media platforms such as Facebook, Twitter, LinkedIn, and Telegram.
Two recent articles are available for updates on the broader Pi Network ecosystem. The first article can be found here, and the second article can be found here.
[1]: Link to the source or reference for the analysis points. [2]: Link to the source or reference for the token unlock information. [3]: Link to the source or reference for the broader market dynamics information. [4]: Link to the source or reference for the all-time high and low information. [5]: Link to the source or reference for the overall market performance information. [6]: Link to the source or reference for the Binance welcome offer. [7]: Link to the source or reference for the Bybit welcome offer.
- Despite the recent surge in the PI token's price, analysts suggest that it might be a temporary bounce, or a dead cat bounce, due to the ongoing selling pressure and lack of strong market conviction.
- In the midst of questioning the sustainability of the PI rally, investors may find opportunities in other digital assets such as Ethereum, altcoins, and other cryptocurrencies available for trading on platforms like Binance and Bybit.
- As the long-term recovery of the PI Network depends on developments in mainnet and the mobile platform's real-world adoption, investors should keep an eye on those aspects to gauge the future potential of their investments in this decentralized finance project.
