Pi Network Price Forecast: PI holds steady amid AI-powered KYC launch, CEXs reserves netflow
- Pi Network recovers nearly 3% following three consecutive days of losses.
- Pi Network co-founder, Nicholas Kokkalis, announces that the AI-enabled KYC process is now live.
- CEXs' wallet balances recorded a net outflow of nearly 2 million PI tokens, suggesting a surge in demand at discounted prices.
Pi Network (PI) ticks higher by nearly 3% at press time on Wednesday after three straight days of losses, which resulted in a record low of $0.1842. The intraday recovery aligns with net outflows from Centralized Exchanges (CEXs) and PI reserves, as well as the AI-enabled Know Your Customer (KYC) process going live.
Still, the technical outlook suggests that the downside risk could persist as long as bearish momentum remains.
Pi Network’s new AI feature boosts demand as CEXs' reserves drop
Nicholas Kokkalis, co-founder of Pi Network, announced in an X post on Tuesday that the AI-enabled KYC verification is live. The renewed process will allow Pi network users, commonly referred to as Pioneers, to activate the mainnet wallet before the previously required 30 mining sessions. It is worth noting that this KYC verification will only unlock the mainnet wallet for Pioneers and not the mainnet PI token migration.
With the new feature and discounted prices, PiScan data shows that the demand for PI is gradually increasing. CEXs' wallet balances record a net outflow of 1.94 million PI tokens over the last 24 hours, following the near 8 million net outflow previously reported on by FXStreet on Tuesday. This second consecutive day of net outflow suggests that the pioneers are accumulating at discounted rates.
CEXs wallet balances. Source: PiScan
Pi Network stabilizes after sharp drop, hints at potential recovery
Pi Network trades above $0.2800 at press time on Wednesday, following the 4% drop on the previous day. The intraday recovery hints at further growth as PI stabilizes after the 19% drop on Monday.
A potential bounce back could challenge the overhead resistance trendline at $0.3220. To reinstate an uptrend, PI should reclaim the 50-day Exponential Moving Average (EMA) at $0.3655.
Still, the momentum indicators on the daily chart indicate a bearish trend, as the Moving Average Convergence Divergence (MACD) declines into negative territory after crossing below its signal line on Monday. The successive rise in red histogram bars indicates a boost in bearish momentum.
Additionally, the Relative Strength Index (RSI) at 29, pointing upwards, remains in the oversold region as selling pressure is gradually cooling off. If RSI resurfaces above the oversold boundary line at 30, it could signal a fresh recovery in PI.
PI/USDT daily price chart.
Looking down, if PI extends the declining trend, the S2 pivot level at $0.2387 could act as the immediate support floor.
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.
