Pi Network Price Forecast: PI rebounds after consolidation, eyes channel breakout
|- Pi Network’s PI token ticks higher on Friday after a week of consolidation.
- PI flirts with a channel breakout that could further support price gains if confirmed.
- The surge in CEXs' wallet balances driven by user deposits indicates lowered retail demand, which weighs on buying pressure.
Pi Network (PI) appreciates over 3% at press time on Friday, marking the end of a week-long consolidation phase and teasing a potential channel breakout that would add to the possibility of further gains ahead. However, chances of a breakout are limited given the increase in Centralized Exchanges (CEXs) wallet balances, which indicates a decline in retail demand.
CEXs' reserve surge signals waning retail demand
A surge in CEX reserve relates to an increase in user deposits, suggesting a decline in investors’ confidence. PiScan data shows that the CEX wallet balances have increased by 2.01 million PI tokens over the last 24 hours, indicating that the retail demand is slowing down.
CEXs wallet balances. Source: PiScan
Pi Network eyes channel breakout to the 50-day EMA
Pi Network edges higher by over 3% at press time on Friday, testing the upper boundary of a falling channel pattern on the daily chart. The intraday recovery following the cool-off period of over a week hints at a potential channel breakout.
A decisive close above this trendline at $0.3610 would confirm the channel breakout. In this scenario, PI could face the 50-day Exponential Moving Average at $0.3836 as the next key obstacle.
Adding to the possibility of a trend reversal, the Moving Average Convergence Divergence (MACD) and its signal line hold a stable uptrend on the daily chart, indicating a steady rise in bullish momentum. Furthermore, the Relative Strength Index (RSI) has reached neutral levels close to 50, with the recent spike indicating a recovery in buying pressure.
PI/USDT daily price chart.
Looking down, if PI fails to close decisively and reverses from the overhead trendline, it could retest the all-time low of $0.3220 from August 1.
Cryptocurrency prices FAQs
Token launches influence demand and adoption among market participants. Listings on crypto exchanges deepen the liquidity for an asset and add new participants to an asset’s network. This is typically bullish for a digital asset.
A hack is an event in which an attacker captures a large volume of the asset from a DeFi bridge or hot wallet of an exchange or any other crypto platform via exploits, bugs or other methods. The exploiter then transfers these tokens out of the exchange platforms to ultimately sell or swap the assets for other cryptocurrencies or stablecoins. Such events often involve an en masse panic triggering a sell-off in the affected assets.
Macroeconomic events like the US Federal Reserve’s decision on interest rates influence crypto assets mainly through the direct impact they have on the US Dollar. An increase in interest rate typically negatively influences Bitcoin and altcoin prices, and vice versa. If the US Dollar index declines, risk assets and associated leverage for trading gets cheaper, in turn driving crypto prices higher.
Halvings are typically considered bullish events as they slash the block reward in half for miners, constricting the supply of the asset. At consistent demand if the supply reduces, the asset’s price climbs.
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