After rising more than one percent in the past 24 hours, Pi Network is currently trading at $0.385. Since hitting a low of $0.3303 on August 25, the token has rebounded by over 16 percent, sparking optimism that it could potentially reach the one-dollar mark.
However, there is a significant unlock of approximately 149 million tokens scheduled for September, which could introduce additional supply into the market and potentially exert downward pressure on the price.
Another issue of concern is the liquidity of the token. Daily trading volume has been declining steadily since mid-May and currently stands at around $43.8 million. This lack of liquidity makes it challenging for the market to absorb selling pressure and increases the likelihood of more pronounced price fluctuations.
From a technical standpoint, Pi remains within a descending channel pattern that has been in place since May, indicating a bearish trend. Key indicators also suggest a negative bias, with the Relative Strength Index at 38, signaling weak momentum, and the MACD remaining flat, reflecting trader indecision.
If bearish forces prevail, Pi could revisit its all-time low of $0.322. Conversely, a sustained recovery could test the $0.400 resistance level.
Reasons Behind Pi’s Rebound
Analyst Kim Wong attributes Pi’s rebound not only to technical factors but also to recent developments within the ecosystem. The token was listed on Swapfone on August 25 and witnessed the launch of a Pi SEK exchange-traded product (ETP) by Valour in Europe, which are seen as significant milestones.
Furthermore, protocol upgrades and the introduction of Linux nodes have bolstered confidence in the network, while oversold conditions presented an opportunity for buyers to re-enter the market. These factors combined have contributed to Pi’s recovery.
Significance of Valour’s Pi ETP
Established in 2019, Valour is a regulated financial firm specializing in bridging traditional finance with the digital asset space. With a diverse range of exchange-traded products linked to various cryptocurrencies, Valour’s entry into the market signifies a step towards institutional acceptance and mainstream adoption for Pi.
Potential for Pi to Reach $1 Again
Whether Pi can reclaim the $1 mark depends on the interplay between bearish market conditions and bullish adoption catalysts. While upcoming supply unlocks and dwindling trading activity pose challenges, exchange listings, ecosystem advancements, and the Valour ETP offer new avenues for growth.
