Pi Network Price Forecast: PI nears triangle breakout amid surging exchange demand
- Pi Network holds above $0.20 psychological level, approaching the apex of a descending triangle pattern on the 4-hour chart.
- The CEXs' wallet balances recorded an outflow of over 1.32 million PI tokens, suggesting a surge in on-exchange demand.
- Two payments of nearly 1 million PI each in the last 24 hours suggest an adoption boost.
Pi Network (PI) trades above $0.2000 at press time on Thursday, avoiding further losses below this psychological level. Technically, the PI token approaches the apex of the descending triangle pattern on the 4-hour chart, while on-chain data could provide tailwinds to tilt the breakout on the upside.
On-chain data suggest a demand surge
An increase in outflow from Centralized Exchanges (CEXs) reserves signals a decline in available supply pressure, which could foster the next upcycle. PiScan data shows that the CEXs’ wallet balances record an outflow of over 1.32 million PI tokens in the last 24 hours, suggesting a surge in demand from exchange users.
However, the majority of PI available supply remains off-exchange as Pi Network remains stringent on requiring Know Your Business (KYB) as a part of its listing process.
CEXs' wallet balances. Source: PiScan
On the other hand, the Pi Network ecosystem witnessed a rise in payment transactions of 999,999 PI each, worth $200,199, in the last 24 hours. This suggests an increase in utility and adoption of the Pi Network.
Large transactions on Pi Network. Source: PiScan
Technical outlook: Pi Network eyes triangle breakout rally
Pi Network holds above the $0.1919 support base formed by a 4-hour candle low on October 11. The baseline completes a descending triangle pattern with a local resistance trendline.
PI approaches the apex of this triangle, after multiple bounce-backs from the $0.1919 base, with long-tailed candles in the last three weeks. A decisive close above the centre Pivot Point at $0.2086 would confirm a renewed uptrend, potentially targeting the R1 Pivot Point at $0.2249.
The Moving Average Convergence Divergence (MACD) extends a sideways trend with a declining tilt below the zero line, suggesting a sell-side inclination. Additionally, the Relative Strength Index (RSI) reads 41, rising towards the halfway line, indicating a spark in buying pressure.
PI/USDT daily price chart.
On the downside, if PI slips below $0.1919, it would confirm the downside breakout of the triangle pattern, which could result in a free fall to the $0.1732 mark, aligning with the S2 Pivot Point.
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.
