Pi Coin price crashed by 5.2% today, June 30, continuing a downtrend that started in May when it peaked at $1.6558. Its daily volume rose by 11% to $90 million after the Pi Day 2 news. Still, technicals suggest that the Pi Network price may bounce back this week as investors buy the dip.
Pi Coin Price Could Surge if Key Support Holds
Despite launching major features on the Pi Network, Pi Coin continues to take hits. The 12-hour timeframe provides a contrarian case for Pi Coin price. First, there are signs that it has formed a double-bottom pattern at $0.4047, its lowest level on April 5 and June 13. Its neckline is at $1.6558, the highest point in May.
A double-bottom pattern is a contrarian pattern that often signals a reversal, as it indicates that bears are hesitant to place bearish bets below the lower level. If this pattern works out, the initial Pi Network price target to watch will be at the psychological point of $1. A move above $1 will point to more gains to $1.65. A move above the neckline will signal further gains, potentially reaching $2.8977. This target is established by first measuring the distance from the neckline to the double bottom, and then the same distance from the neckline.
Second, Pi Coin price has formed a falling wedge pattern, comprising of two descending and converging trendlines. This pattern links the key resistance levels since May 25. It also connects the lowest points since May 17. A bullish breakout normally happens when the two lines near their confluence, which has already happened.
Third, Pi Network’s volatility has slumped in the past few weeks as shown by the Bollinger Bands and the Average True Range (ATR). Falling volatility could be a sign of a calm before the storm, which often leads to a breakout in either direction. Based on the double-bottom and wedge, this breakout will likely be bullish.
The bullish Pi Network forecast will become invalid if the token crashes below the double-bottom point at $0.4047.
Top Pi Network News that Could Push it Higher
Pi Network price could rebound after the major announcements that the team made during the Pi Day 2 event. In it, they unveiled the Pi AI Studio, which will enable users to build and launch AI applications on the network. This product will benefit from the network’s top innovations like the Pi Ad Network, its KYC of over 13 million users, .pi domain, and the Pi Wallet.
The developers also launched Pi Directory Staking, which introduces a decentralized way for pioneers to support and promote the ranking of Pi applications and utilities. All these features will also benefit from the Pi Network Ventures, the $100 million fund to support the ecosystem.
Pi Network price could also rebound if Bitcoin finally jumps as ETF inflows surge and supply in exchanges falls. Altcoins often rise when Bitcoin is in a strong bull run.
Summary
Pi Network price remains in a deep bear market after plunging by double digits in the past two months. There are signs that the downtrend is losing momentum, which could lead to more gains this week or in July.
Frequently Asked Questions (FAQs)
The main bullish aspect of the Pi Coin price is that it has formed a double-bottom pattern and a falling wedge, pointing to more gains.
The most likely scenario is where the token jumps to the psychological point at $1. A break above that level will point to more gains, potentially to $1.65.
The main risk for the Pi token price is a drop below the double-bottom point at $0.4047.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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