The price of Pi Network has skyrocketed within a high-trading environment, making it one of the standout coins in performance.
The Pi Network (PI) token surged by more than 45%, hitting a peak of $0.75, its highest mark since March 31. This increase coincided with a trading volume exceeding $1 billion, the highest it has been since early March.
Previously, Pi had been on a sharp downward trajectory after reaching a peak of $3 on February 26, dropping over 75% from that value, resulting in significant losses for pioneers and other investors.
This decline is largely attributed to the expected influx of supply due to its tokenomics. Current data indicates that the network will issue millions of new tokens each month, contributing to a total supply growth of 1.6 billion over the next year. The unlocking of tokens is typically viewed negatively as it dilutes the holdings of existing investors.
The price of Pi Network has also fallen due to investors’ concerns regarding its absence from exchange listings since launching its mainnet. Major exchanges such as Coinbase, Binance, and Kraken have yet to include it, making it inaccessible to millions of potential users.
Additionally, the value of Pi coin has significantly decreased since February, partly because of limited growth within its ecosystem, with many developers choosing to build on more established platforms like Berachain, Solana, and Avalanche.
Pi Network price increases as the wedge pattern activates
The recent recovery in Pi coin’s price has been driven by technical factors previously mentioned. A key factor is the formation of a falling wedge pattern, a well-known bullish reversal indicator.
This pattern features two descending and converging trendlines. A breakout is considered bullish when these lines converge and trading volume consistently rises.
Furthermore, Pi Network has been exhibiting a bullish divergence pattern, which occurs when the oscillator increases alongside the price. In this case, both the MACD and the Bollinger Bands Trend indicator have been on a steady upward trajectory.
As a result, the token might continue to rise, with bulls setting their sights on the psychological milestone of $1, approximately 35% above the current price. However, a drop below the lowest point of this week would negate this optimistic outlook.