Pi Network has staged a strong recovery after falling to a low of $0.6156 following its mainnet launch in February.
Pi Network (PI) was trading at $1.7650 on March 16, up by almost 190% from its lowest level on February 20.
It has several catalysts that may push it higher in the coming months. First, Pi Network’s resilience after the mainnet launch has, to a large extent, proven that it is not a scam, as many had feared.
Second, Pi Network’s size and the fact that it is a Made in USA coin, means that it may become a spot ETF candidate. Pi has a market cap of over $13 billion, making it a larger coin than others that have received ETF applications, such as Stellar (XLM), Litecoin (LTC), and Hedera Hashgraph (HBAR).
Initial data shows that Pi Network is also a highly popular coin, with daily volume exceeding $800 million. This suggests that an ETF based on it would likely attract strong investor interest.
Further, Pi Network has already been listed by several large centralized exchanges, including OKX, Bitget, MEXC, and Gate.io. However, several tier-1 exchanges, such as Binance, Coinbase, Upbit, Crypto.com, and Kraken, have yet to list it.
There is a possibility that Binance will list it following a poll in which most participants voted in favor. These exchange listings would likely contribute to a higher Pi Network price in the future.
However, a significant risk may hinder Pi coin’s price performance: token unlocks. CoinMarketCap data shows that the maximum supply of Pi Network coins is 100 billion, compared to a circulating supply of 7 billion.
According to Pi explorer, millions of new tokens will be released into the network each month—188 million this month and 91.5 million in March. Over 1.4 billion new tokens will be released this year. New token unlocks typically dilute existing holders by increasing supply.
Pi Network price analysis
The hourly chart shows that Pi coin’s price has pulled back to $1.80 after reaching a high of $2 this week. It has moved below the lower boundary of the rising wedge pattern. A wedge is a highly bearish pattern characterized by two ascending and converging trendlines.
Pi has also formed a head and shoulders pattern. Therefore, it is likely to retreat and retest the key support at $1.533, its lowest level on March 2. A move above the right shoulder at $2 would invalidate the bearish outlook.
