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Pi Network (PI) Price News & Analysis: Token Oversupply Threatens 50% Drop as Monthly Unlocks Continue
By Oliver Dale, Editor-in-Chief of CoinCentral
The Pi Network has been experiencing a bearish trend, with the price plummeting by over 30% in just three months. The situation is precarious, and investors are on high alert for any sign of hope. However, recent developments have triggered concerns regarding the token’s oversupply and the potential for a significant price drop.
Pi Coin’s daily chart displays a textbook “wedge pattern,” which often indicates continued downward movement if not broken out above the resistance level at $0.78. If this pattern plays out as expected, Pi Coin could potentially fall to $0.402, matching its monthly low. Conversely, a move above the resistance level of $0.78 could reverse this trend and propel prices towards $1.
Current technical indicators suggest that Pi is trading at $0.6124, holding above an ascending trendline but struggling with resistance from the 50-period Exponential Moving Average (EMA) at $0.6423. The Relative Strength Index (RSI) currently reads 41.6, indicating weak momentum but potential for a rebound.
This setup implies that traders are closely monitoring the price action, awaiting a clean break above $0.642 or below $0.5522 to initiate significant price movements. A breakdown below $0.5522 may prompt intensified selling pressure and push prices towards $0.48.
Institutional Adoption Possibilities Amidst the bearish sentiment, rumors of potential institutional adoption offer a glimmer of hope for Pi Network investors. There is speculation that major US financial institutions like JPMorgan and Bank of America are exploring Pi Network’s capabilities for cross-border payments and Web3 integrations, following the network’s growing presence in the United States.
Pi Network has achieved affiliate status at Stanford University and entered into a real estate partnership with Florida-based Zito Realty. The integration with Chainlink Data Streams highlights its commitment to Web3 expansion efforts. Additionally, increasing merchant adoption is visible as more businesses begin accepting PI for transactions.
In conclusion, the key indicators to watch include any signs of a triangle breakout above $0.642, changes in momentum measured by Moving Average Convergence Divergence (MACD) indicators and updates on institutional traction or technical upgrades.
As the article highlights Pi Network’s recent price movements, investors should be prepared for potential volatility breaks, especially given the tight triangular pattern preceding significant price action.
Source: https://coincentral.com/pi-network-pi-price-news-analysis-token-oversupply-threatens-50-drop-as-monthly-unlocks-continue/
