Pi Network is experiencing a consistent decline, influenced by various negative factors impacting its PI token. We analyze the current state, PI/USDT chart, and discuss the potential breakout.
Current Market Situation for Pi Network
The PI token is on a consistent 13-day decline after a brief recovery above $1.79 on March 13. Facing strong resistance at the $1 mark, the token has lost over 3% of its value in the last 24 hours. Factors such as token unlocks, increased activity on centralized exchanges, and major exchanges ignoring listing requests have exacerbated the situation, leaving PI struggling to hold above the critical $1 level. Over the past week, PI has dropped by over 20%, falling from 17th to 27th in market rankings, according to CoinGecko data.
PI/USDT Chart Analysis
Analysis of the PI/USDT chart on TradingView highlights a 'falling wedge' pattern on the 4-hour timeframe. This pattern is often considered bullish and forms when an asset's price consolidates between two downward-sloping converging trendlines. Despite consistent lower lows and lower highs, the narrowing price range points to decreasing volatility. Support near the lower trendline of the descending channel held firm at $0.87, signaling buyers' efforts to push prices higher.
Potential Breakout and Threats
The 'falling wedge' pattern suggests growing buyer interest as selling pressure diminishes, potentially leading to a breakout above the upper trendline. However, even with PiDaoSwap, a decentralized exchange added to the Pi ecosystem, buyers have yet to show enough confidence to significantly push the price. Currently, PI is trading around $0.91. Traders often watch for a breakout above the wedge’s upper trendline as a potential entry signal. While this pattern is generally seen as bullish, it is not foolproof. Traders are encouraged to combine this analysis with other indicators and tools to confirm price direction.
Pi Network is at a crossroads, facing major challenges in the market. While the current PI/USDT chart indicates potential for a breakout, traders must consider additional factors.
