Pi Network Price Pumped 45%, Now Facing Pullback: Is Bullish Momentum Over?
- Pi Networks price gains made it one of the best-performing cryptocurrencies.
- Technical indicators like MACD and BBtrend signaled bullish momentum, with traders eyeing the $1 psychological resistance level.
- Despite the rally, concerns remain over token supply inflation, lack of exchange listings, and community frustration with the projects direction.
During the afternoon trading session on April 5, the Pi network token price soared to $0.79, gaining 45% a high not seen since March 31. The price gains coincided with more than $1 billion in trading volume, a peak that hasnt happened since early last month.
After hitting its recent high, PI could not sustain its upward momentum and retrace back. Currently, PI is trading at $0.6082, with a 24-hour trading volume of $1.06B and a market cap of $4.20B. Over the last 24 hours, the token price is down by 2%.
Source: CoinMarketcap
Pi Coin Heads for $1 Mark
Technical indicators predicted possible price gains for Pi coin. The coin formed a bullish divergence pattern, which occurs when an asset and its oscillator are rising at the same time.
The MACD has been on a steady rise, just like the Bollinger Bands trend indicator. Hence, the coins price is on the rise as buyers eye the $1 mark, its next psychological level, which is nearly 35% higher than its current price.
Chart Indicators. Source: TradingView
However, this bullish outlook will no longer be valid if the tokens price drops below the weeks lowest level. The Pi coins gains were a shining light in a highly bearish market.
Lack of Listings and Activity Drags Pi Price Down
Since reaching a high of $3 on Feb. 26, the Pi coin price has been on a significant downtrend. Its current price represents a 75% drop from this peak price, resulting in billion-dollar losses for pioneers and investors.
The tokens poor price performance has also been due to its tokenomics incoming supply. On-chain data shows that the network will unlock millions of tokens every month.
If the token release continues at the current rate, the coins circulating supply would have increased by 1.6 billion within the next one year. An increase in any tokens circulating supply usually causes a decline in its price, creating a decline in the worth of investors holdings.
A lack of exchange listings is another cause for the poor price performance of the Pi network, with many investors expressing worries as to why there hasnt been a lot of exchanges listing the token. Many of them believe that the Pi coin would be available to millions of users when tier-1 exchanges like Coinbase, Kraken, and Binance list it.
In addition, the Pi networks native token price has been dropping since February due to a slowdown in the ecosystems activities. Many developers prefer Avalanche, Solana, Berachain, and other popular blockchains to using the Pi network.
Read more: https://www.tronweekly.com/pi-network-price-pumped-bullish-momentum-over/
Text source: TronWeekly
