Red Alert For Pi Network Price As A Risky Pattern Forms

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As a seasoned analyst with years of experience in the volatile world of cryptocurrencies, I can’t help but feel a sense of deja vu when looking at the Pi Network price chart. The bearish pennant pattern and the near double-top are red flags that have often signaled turbulent times in the past.

Over the last week, the value of Pi Network has been steadily decreasing due to diminishing expectations for the mainnet launch in 2021. This decline has resulted in a potentially risky chart formation for the Pi coin, suggesting further potential drops may occur.

Pi Network Price Analysis: Bearish Pennant Forms

The potential for a significant bearish drop in Pi Coin’s IOU price seems imminent, as it has created two potentially dangerous chart patterns. One such pattern resembles a near double-top around the resistance level at $92. This double-top pattern, characterized by twin peaks, is often interpreted as a warning of further declines.

The cryptocurrency Pi Network is showing signs of a bearish pennant formation, which is recognizable by a straight upward line followed by a triangle shape. This symmetrical triangle has developed distinctly and is gradually approaching its merging point. Usually, a bearish breakout occurs when the two sides of the triangle are nearly meeting.

It’s concerning that Pi Network has dipped slightly under its 50-day Exponential Moving Average, and to make matters worse, the MACD (Moving Average Convergence Divergence) has fallen below the zero line as well. This suggests a potential downward trend in the network’s price movement.

Consequently, if there’s a dip beneath the uptrend line that has been forming since September, based on the major declines, it could suggest further price reduction. This potential event might push Pi Network’s price back to $37, its lowest point from October 15, marking a 30% decrease from the current value.

From my analysis, if the Pi coin price surpasses the significant resistance level at $57.5, it would contradict the bearish perspective I’ve been considering. This is the upper boundary of the pennant’s triangle. A bullish outlook could be strengthened by the fact that the Pi coin price has been maintaining itself above the ascending trendline.

Additionally, the significant surge observed in November took place following some time in a consolidation phase. If another breakout occurs, there’s a possibility that the value of the coin might reach approximately $73, which represents the 61.8% retracement level.

Pi Coin Mainnet Launch

As a researcher, I suspect one possible explanation for the potential bearish breakout in the Pi Network’s price could be due to delays in the mainnet launch, which was initially anticipated for this month.

Over the weekend, the developers delayed the deadline for Know Your Customer (KYC) verification from November 30 to December 31. This delay signifies the transition of the current mainnet to a fully operational mainnet.

The upcoming mainnet launch is significant as it will enable early adopters (pioneers) to exchange their Pi tokens for real-world currencies, which isn’t possible during the mainnet phase itself. It is widely expected that the value of Pi Network’s IOU (IOUs represent a promise to deliver a certain amount or type of currency in the future) will increase prior to the mainnet launch.

For clarification: This Internet of Us (IoU) isn’t connected to the primary Pi Network group but is merely showcased in HTX. Despite this, it serves as a stand-in for the Pi Network token.

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2024-12-04 15:56