Pi Network Price Forecast: Reversal extends as buying pressure, social interest decline
- Pi Network extends the reversal from the 50-day EMA as buying pressure declines.
- A moderator from Pi Network clears up the ISO 20022 compliance as misinformation.
- Social chatter surrounding Pi Network fizzles, suggesting low interest as the broader market remains volatile.
Pi Network (PI) price is down 5% at press time on Monday, extending the reversal from the 50-day Exponential Moving Average (EMA) that occurred last week. The PI token risks further losses as a Pi Network moderator sets the record straight about the ISO 20022 rumor, urging users to wait for official statements from the Pi core team. Meanwhile, social chatter is down from last week’s high, suggesting a decline in interest among traders.
Social interest around PI declines as the ISO 20022 rumor resolves
Lumexo, a Stellar-based wallet company, announced on Sunday that the Pi Network is nearing ISO 20022 compliance, an open global standard for financial messaging. The announcement provides an official outlet for the ISO 20022 compliance rumor, competing with blockchain-based cross-border remittance leaders like Ripple’s XRP and Stellar (XLM).
However, r/PiNetwork, a Pi Network moderator, replied in a dismissive tone, saying, “This misinformation did not come from @PiCoreTeam.” For users anticipating an official announcement coming later, the moderator said, “I don't think it's a good idea to guess what PCT might be doing - people repeat it and before you know it, guessing becomes facts that everyone is repeating - additionally the whole ISO 20022 narrative is based on misunderstandings of what that is.”
r/PiNetwork moderator clears up ISO 20022 rumor. Source: X
Still, the ISO 20022 rumor remained a crucial part of the buying pressure last week.
With the moderator trying to silence the rumor, the social chatter surrounding Pi Network is also declining. Santiment data shows that the social dominance and social volume decreased to 0.025% and nine social media messages on Sunday, compared to 0.186% and 36 messages on Wednesday.
Pi Network social interest. Source: Santiment.
In a nutshell, the air clearing around potential ISO 20022 compliance, aligning with low social interest, warns of a possible decline in buying pressure.
Technical outlook: Pi Network’s reversal aims for $0.1919
Pi Network trades below $0.2400 at press time on Monday, risking another correction phase as previously seen after reversing from the 50-day EMA on May 21, June 25, and August 10. The reversal from the average line could test the $0.1919 support level marked by the October 11 low.
If the mobile mining cryptocurrency drops below this level, the $0.1533 low from October 10 would be the last line of defence.
The momentum indicators on the daily chart reflect a decline in buying pressure as the Relative Strength Index (RSI) at 50 reverts to the halfway line from 62 on Wednesday. At the same time, the uptrend in the Moving Average Convergence Divergence (MACD) flattens out as it approaches the zero line, risking a potential cross below the signal line. This crossover would confirm renewed selling pressure.
PI/USDT daily price chart.
Still, a potential rebound above the 50-day EMA at $0.2589 could extend the prevailing trend in the momentum indicators. In such a case, the PI token could test the $0.3220 level, marked by the August 1 low.
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.
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.
