Pi Network Price Forecast: PI eyes potential rebound as DeFi features goes live on testnet
- Pi Network prepares for a lift-off from a key support base.
- Pi Network holds steady above $0.2700 following the 2% rise from the previous day.
- Pi Network announced new DeFi features, including DEX, AMM liquidity pools, and token creation, on its Testnet.
- The shift to real-world use cases could arrive on the PI mainnet with the Stellar protocol version 23 upgrade.
Pi Network (PI) edges higher by 1% at the time of writing on Thursday, following the 2% rise from the previous day. The recovery in PI is driven by its co-founder, Chengdiao Fan, attending the Token2049 event and the launch of new Decentralized Finance (DeFi) features on its testnet.
New DeFi features bring real use cases to the Pi ecosystem
Moments after Chengdiao Fan delivered a speech on Web3 utility at the Token2049 in Singapore on Wednesday, Pi Network announced the launch of multiple DeFi features on its testnet. These include a Decentralized Exchange (DEX), an Automated Market Maker (AMM) liquidity pool, and token creation.
Pi developers can test token swaps, liquidity pools, and other DeFi tools on the DEX. Furthermore, the core team emphasizes a focus on real-world utility over meme coins, utilizing the token creation feature.
The ongoing development of Stellar’s version 23, bringing the smart contract functionality, is crucial for these features to come live on the PI Mainnet. As of Thursday, version 23 is live on Testnet 1 with the roadmap from Testnet 2 to Mainnet.
Pi Network prepares for a lift-off from a key support base
Pi Network holds above $0.2700 level, extending the consolidation above the $0.2565 support level marked by Thursday’s low. The sideways shift on the daily chart reflects the muted effect of Chengdiao’s attendance at Token2049 and the launch of DeFi features.
Still, the technical indicators on the daily chart suggest a gradual decline in selling pressure, which could pave the way for the next reversal run in the PI token. The Relative Strength Index (RSI) reads 33, resurfacing from the oversold zone. Additionally, the Moving Average Convergence Divergence (MACD) is approaching its signal line, signaling a potential crossover, which would indicate a bullish shift in PI’s trend momentum.
On the upside, the $0.3220 low from August 1 could act as a critical resistance, which remains close to the falling channel’s resistance trendline.
PI/USDT daily price chart.
However, if PI dips below $0.2565, it could extend the decline to the $0.2000 round figure.
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.
