Pi Network price went parabolic in a high-volume environment, making it one of the top-performing coins.
The Pi Network (PI) token jumped by over 45%, reaching a high of $0.75, its highest point since March 31. This surge happened as its volume soared to over $1 billion, the highest figure since early March.
Pi has been in a strong downward trend after peaking at $3 on Feb. 26. It has dropped by over 75% from that level, costing pioneers and other investors billions.
This crash is mostly because of the incoming supply due to its tokenomics. Data shows that the network will release millions of new tokens each month. Cumulatively, the supply will grow by 1.6 billion in the next 12 months. Token unlocks are bearish because they dilute existing investors.
Pi Network price has also plunged as investors remained concerned about the lack of exchange listings since its mainnet launch. Most tier-1 exchanges like Coinbase, Binance, and Kraken have not listed it, meaning it is unavailable to millions of users.
Further, Pi coin has plunged since February because of its weak ecosystem growth, with most developers opting for mainstream networks like Berachain, Solana, and Avalanche.
Pi Network price rises after the wedge activates
The ongoing Pi coin price recovery was due to its technicals, which crypto.news has highlighted before. The most important was a falling wedge pattern, a popular bullish reversal sign.
This pattern is characterized by two falling and converging trendlines. A bullish breakout happens when these two lines near their confluence and when the volume is rising steadily.
Pi Network has also been forming a bullish divergence pattern, which happens when an oscillator is rising as the price rises. The MACD and the Bollinger Bands Trend indicator have steadily risen in this case.
Therefore, the token may keep rising as bulls target the psychological point at $1, which is about 35% above the current level. A drop below this week’s lowest level will invalidate the bullish outlook.
