Pi Network Surges amid High Trading Volume
Pi Network (PI) has seen a significant price increase, making it one of the top-performing cryptocurrencies. The token’s value soared by over 45%, hitting $0.75, it’s highest as March 31. This surge coincided with a trading volume exceeding $1 billion, the highest since early March.
Despite this recent rise,Pi network has faced a steep decline since February. It peaked at $3 on February 26 but has since dropped by more than 75%.This decline is largely due to the network’s tokenomics, which will release millions of new tokens monthly. In the next year, the supply is expected to grow by 1.6 billion,which can dilute existing investors’ holdings. the lack of listings on major exchanges like Coinbase, Binance, and Kraken, affecting pioneers and investors.
Investors are also concerned about Pi Network’s weak ecosystem growth. Many developers prefer mainstream networks like Berachain, Solana, and Avalanche. Though, the recent price recovery is attributed to technical factors. A falling wedge pattern, a bullish reversal sign, has been forming. This pattern involves two converging trendlines.A bullish breakout occurs when these lines near their confluence with rising volume.
Additionally, Pi Network has shown a bullish divergence pattern. Indicators like MACD and Bollinger Bands Trend have steadily risen. If the bullish trend continues, the token may reach $1, about 35% above current levels. however, a drop below this week’s lowest level could invalidate the bullish outlook.
