- Pi Network’s price decline is driven by limited exchange listings, token unlocks, and a weak crypto market.
- Technical indicators like ADX and BBTrend show a weakening downtrend, hinting at a potential reversal.
- A bullish breakout in April could push Pi’s price toward $1.7980, especially with major exchange listings.
The Pi Network token has also experienced a dramatic fall this year, with its value plummeting sharply since its initial rise after the mainnet launch in February. From a high of almost $3, the token has fallen to around $0.7925, causing investors to incur huge losses.
In spite of this downtrend, indications of possible recovery are being witnessed.
Limited listings on exchanges have been a primary reason for the price decline. Although the mainnet launch of Pi Network was a huge success. The token has not been listed on the majority of top cryptocurrency exchanges. Binance, the largest cryptocurrency exchange, has not yet supported the token, even though an overwhelming 85% of those who voted were in favor of its listing.
In the same way, other prominent platforms including Coinbase, Bybit, Kraken, and Upbit have not included Pi Network in their available offerings. Even the CEO of Bybit has questioned the project’s legitimacy, although the developers at Pi Network have rejected such claims.
Token dilution concerns have also hit the price. Another cause of gravity for the price of Pi coin is the forecasted rise in token unlocks. In the coming twelve months, about 1.6 billion tokens will be unlocked. These unlocks add supply to the market, reducing the value of the holdings and putting pressure on the token’s price downwards.
The overall cryptocurrency market decline has also affected Pi Network’s woes. The overall cryptocurrency market has been underperforming in the last few months, with Bitcoin and the majority of altcoins declining.
Macroeconomic conditions, such as uncertainty over trade policies and economic conditions, have impacted investor sentiment, resulting in broad sell-offs across the market.
Even while the decline continues, technical indicators show that the sell-off is losing steam, and there could be a recovery in the near term.
Weakening downtrend indicates a possible change. The Average Directional Index (ADX), which measures the strength of the trend, fell to 15 from the peak of close to 60 last month. The lower ADX reading implies that the downtrend is losing steam and may be setting the stage for a reversal.
Bullish divergence in BBTrend implies a change in market sentiment. The BBTrend indicator that tracks the widening and narrowing of Bollinger Bands has begun to display a bullish divergence. This may mean a change in market sentiment and the potential for a price movement upwards.
There is a pattern of a falling wedge that indicates a reversal that is bullish. A technical pattern developing in Pi Network’s price chart is the falling wedge. It is widely regarded as a very bullish reversal signal in technical analysis, signaling that the current trend of falling might come to an end any moment from now.
With the technical configuration as of now, analysts expect a possible bullish breakout of Pi Network during April. In case the trend reversal happens, the next critical resistance level to observe would be approximately $1.7980. Which is a considerable boost from its present price.
Moreover, if major exchanges decide to list Pi Network, it could provide further momentum for a price rally. Historical data has shown that exchange listings significantly impact token prices, as seen with the Orca token, which surged by over 200% following its addition to Upbit.
Though Pi Network has struggled with major price setbacks based on a lack of exchange support. And token dilution fears, and overall market weakness, technical analysis suggests a possible rebound. Investors will be watching closely as key resistance levels and news about exchange listings have the potential to dictate whether or not Pi Network recovers to former highs in the next few months.
Vitalik Buterin’s ‘Meow’ at Robot Sparks Crypto Speculation Amid Ether’s Price Decline
share
TheNewsCrypto – Read More