The Pi Network price has crashed by over 90% from its all-time high, and each rebound has met substantial resistance.
Summary
- Pi Network price has plunged by over 90% from it all-time high.
- The coin has formed the highly bullish falling wedge pattern.
- Its developers have made some important announcements that may boost its performance.
Pi Coin (PI) token peaked at $2.98 in February after its mainnet launch and then tumbled to a record low of $0.1465 in October. Its market capitalization has tumbled from nearly $20 billion to $1.97 billion today.
Pi Network’s crash is attributed to several factors, including centralization, a lack of major exchange listings, illiquidity, increased token unlocks, and a lack of utility and ecosystem.
Many verified pioneers also dumped the token after the mainnet launch, as it continued its downtrend. The ongoing crypto market crash also contributed to the sell-off.
There are signs that the Pi Network price crash is ending after the developers made some major announcements. The most notable news came last week when Pi Core Team invested in OpeMind.
The two companies have completed a proof-of-concept that allows node operators to run AI models for OpenMind. This was an essential step, as it showed that these operators can run computations for third-party companies.
Pi Network has also released a testnet product to test decentralized exchanges (DEX), automated market makers (AMM), and liquidity providers. The goal is to boost its utility by enabling exchanges like PancakeSwap and Raydium.
Additionally, Pi has introduced a new KYC verification tool that is boosting the number of users being verified by the network. This upgrade has led to millions of users being verified by the platform. Verification enables users to move their mined Pi tokens to the mainnet.
All these events may help to boost the Pi Network price in the long term. Some of the others that may help do this are exchange listings, greater real-world utility in the network, and a token burn feature.
Pi Network price chart analysis
Technical analysis suggests that Pi’s value may be on the cusp of a strong breakout in the near term. This view is based on the formation of a large falling wedge pattern on the daily chart.
It has already moved above the upper side of this pattern and is attempting to retest it. Such a move would confirm a breakout and push it to the psychological $0.50 level, up 120% from the current level.
Pi has also formed other bullish technical patterns. For example, it has formed a bullish divergence, as top oscillators like the Relative Strength Index and the Percentage Price Oscillator have continued to rise.
