Pi Network Price Forecast: PI extends consolidation as volatility drops
- Pi Network’s declining trend takes a sideways shift in a consolidation range.
- Pi Network is progressing with the network upgrade to the Stellar protocol version 23.
- Technical indicators suggest a lack of momentum following a descending channel breakout.
Pi Network (PI) price sustains a steady move in a tight range above $0.3500 at press time on Thursday, extending the sideways trend. The consolidation phase marks an end to the prevailing downfall, which holds the fate of the upcoming trend. Meanwhile, Pi Network is progressing with the upgrade to the Stellar protocol version 23.
Pi Network Testnet 1 successfully shifts to version 23
Pi Network announced a successful protocol upgrade by shifting the Testnet 1 blockchain to the Stellar protocol version 23 from version 19. Following this, the core team will now focus on updating the Testnet 2 following the Mainnet upgrade.
The new upgraded version will bring smart contracts functionality, as previously mentioned by FXStreet. However, the community remains in the dark on the progress, while the core team has shared the possibility of planned network outages during the implementation.
The Testnet 1 shifts failed to uplift the investors' sentiment surrounding Pi Network, as PI remains in a steady state around $0.3500. Still, the upcoming upgrade to the Testnet 2 will mark a step closer to the Mainnet receiving smart contract features, which could act as a catalyst.
Pi Network’s channel breakout remains trapped in a range
PI trades above $0.3500 at press time on Thursday, following three consecutive indecisive daily candles, which highlight the low volatility movement. The price action displays a range formed between the $0.4000 ceiling and the $0.3220 support floor.
Validating the consolidation, the converging Keltner channels shift from a downward trend, indicating lowered volatility. Furthermore, the Relative Strength Index (RSI) moves flat in the neutral zone at 49, which suggests a lack of momentum and indecisiveness among trades.
Still, the Accumulation/Distribution Line (ADL) increases to -289.83 million from -345 million on Sunday, which indicates a reduction in selling pressure.
Looking up, if PI sustains a daily close above the $0.4000 ceiling, it would mark an end to the streak of lower highs on the daily chart and the consolidation range breakout. More so, the mobile mining cryptocurrency could rebound to the $0.5032 level, last tested on July 22.
However, a drop below $0.3220 would invalidate the previous falling channel pattern breakout and result in a downside conclusion to the consolidation phase. This could extend the decline to the $0.3000 round figure.
Open Interest, funding rate FAQs
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
Author
Vishal Dixit
FXStreet
Vishal Dixit holds a B.Sc. in Chemistry from Wilson College but found his true calling in the world of crypto.
