Pi Network price has staged a strong comeback, in line with our recent prediction. The popular Pi coin jumped to a high of $0.75 on Saturday, up by 80% from its lowest point this month. This surge has pushed its market cap to over $5.17 billion. This article explores why the Pi coin price has jumped and what to expect.
Pi Network price technical analysis
The Pi coin price has jumped mainly because it had strong technicals after crashing by over 86% from its highest point after its mainnet launch. These strong technicals may help to explain why the coin may keep rising and its future targets.
Read more: Pi Network price rally: Why Pi coin is rising after the 85% crash
The four-hour chart shows that the token formed a falling wedge pattern as it crashed. This popular pattern is characterized by two falling and converging trendlines and often leads to a strong bullish breakout.
This breakout happened recently when the two lines of this trendline neared their confluence level.
The token also formed a bullish divergence pattern, which happens when oscillators like the Relative Strength Index (RSI) and the Stochastic Oscillator rise as an asset’s price continues its downtrend.
Pi Network price has moved above the 50-period Exponential Moving Average (EMA), a sign that bulls are now in control. Also, most oscillators have continued to point upwards, meaning that it is gaining momentum.
Therefore, the Pi coin price will likely continue rising as bulls target the 50% Fibonacci Retracement level at $1.70, up by over 135% from the current level. The bullish outlook will become invalid if the Pi Network price crashes below the all-time low of $0.3943.
Pi Network price chart | Source: TradingView
Top catalysts for the Pi coin price
Pi Network price has several catalysts that may push it higher in the long term. First, from a macro level, the token will benefit from the rising recession risks as the Fed will likely intervene as it has done in the past. Susan Collins, a top Fed official, supported this view who said that the bank was prepared to step in and stabilize the market. She said:
“The core interest rate tool we use for monetary policy is, certainly not the only tool in the toolkit and probably not the best way to address challenges of liquidity or market functioning,”
Past interventions by the Fed have been highly bullish for risky assets like cryptocurrencies and stocks. This explains why American equities rebounded on Friday, even after Beijing imposed a 125% tariff on US goods.
The other catalyst for the Pi Network is that tier-1 exchanges will ultimately list it because of its popularity. Recent data shows that the coin’s 24-hour volume jumped by 200% on Saturday to over $500 million. Most of this volume is coming from exchanges like OKX, Bitget, MEXC, and Gate.
A token listing by exchanges like Coinbase, Binance, and Upbit will likely be a bulish catalyst. Just recently, Orca price soared by over 200% in a single day after being listed by Upbit.
Third, the Pi Network price would surge if the developers unveil a plan to burn it. Burning would likely counterweight the scheduled token unlocks, which stand at over 1.5 billion in the next 12 months.
Fortunately, Pi has various avenues to burn the token. First, it can decide to burn fees generated by its ecosystem of applications. Second, it may decide to burn part of the tokens allocated to the foundation. Finally, it can burn unclaimed tokens by pioneers once the grace period ends fully.
The post Pi Network price prediction: why Pi coin is soaring and next target appeared first on Invezz
