Pi Network price has staged a strong comeback in the past few days, paring back some of the losses it made earlier this week.
Summary
- Pi Network price has rebounded by 23% from its lowest point this week.
- The rebound coincided with that of Bitcoin and other cryptocurrencies.
- Technical analysis suggests that the token has more downside.
Pi Coin (PI) token rose to $0.1870, up by 23% from its lowest level this week, bringing its market capitalization to over $1.5 billion. Its daily trading volume was $16 million, relatively higher than its recent averages.
Why Pi Coin price has rebounded
Pi’s rebound has mirrored the performance of other coins that have risen after falling earlier this week. Bitcoin (BTC) has moved back to $90,000, while the market capitalization of all coins moved back to $3 trillion.
The coin also rallied after Donald Trump delivered his speech at the World Economic Forum in Davos. In that speech, he ruled out using force in Greenland. In a separate statement, he said that the US had reached a deal on the semi-autonomous state.
Pi Network price also rose after the developers unveiled a new update that will help developers to integrate payments to their applications. It launched a new library that combines the Pi SDK and backend APIs that will enable developers to enable Pi payments in minutes.
However, Pi Network’s recovery faces some major technical and fundamental risks. For example, Pi’s ecosystem is still not as active as that of other chains like Ethereum and Solana. Its token unlocks are continuing, with over 1.2 billion expected to come online in the next 12 months.
Additionally, Pi has not received any tier-1 exchange listing since its mainnet launch, making it unavailable to millions of potential customers. It is also one of the most centralized cryptocurrencies in the industry, with the Pi Foundation holding billions of coins in hundreds of wallets.
Pi Network price technical analysis
The daily chart shows that the PI Network price crashed to a record low of $0.1520 earlier this week. It then formed a double-bottom pattern, a common bullish reversal sign. It also formed a hammer candlestick, which is made up of a long lower shadow and a small body.
However, the coin could be at risk of more downside as it is about to retest the key resistance level at $0.1933, its lowest level on December 16. A break-and-retest is a sign of bearish continuation.
Pi Coin price has remained below all moving averages and the Supertrend indicator. Therefore, the most likely scenario is where the token resumes the downtrend, potentially to the all-time low of $0.1520.
