Pi Coin Reclaims Support After Drop, Critical Week Ahead

Launched in 2019, Pi Network has yet to release its token to the public market. Despite this, some exchanges, including Huobi and Bitmart, are offering IOU tokens that claim to represent the future value of PI.

However, the official Pi Network team has made it clear that they have not confirmed any exchange listings, and these IOUs are not recognized as official tokens.

Since May 2023, Pi (IOU) has experienced notable price fluctuations. The price followed an ascending support trend line, showing steady growth but struggling to breach a key resistance level at $55. Each time it approached this threshold, it encountered strong selling pressure, resulting in pullbacks.

In September 2024, Pi’s price dipped below its support trend line, hitting $30, a critical horizontal support level. Following this drop, Pi managed to recover and move back above the support line. This shift is significant as it suggests that Pi is testing its ability to hold this level or if further declines are on the horizon.

The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), two crucial technical indicators, are currently at important levels. The RSI is at 50, indicating a balance between overbought and oversold conditions, while the MACD is nearing a bullish crossover, which could signal increasing momentum.

If Pi can successfully reclaim its rising support line, these signals could turn positive, potentially pushing the price back toward the $55 resistance level. However, if it faces rejection, the price might drop below the $30 support level, with a risk of falling under $20.

A significant concern regarding Pi is the discrepancy between the IOU price and its large token supply. With 100 billion tokens, Pi’s total value would amount to $3.6 trillion at the current IOU price, exceeding Bitcoin’s market cap of $1.26 trillion. This discrepancy raises questions about Pi’s actual value when the tokens are officially released.

The upcoming days are crucial for Pi’s price movement. Whether it can reclaim its rising support or faces rejection will likely dictate if Pi trends towards the $55 resistance or declines to $30 or even $20. The outcome of this price action will significantly influence the future trajectory of Pi Network’s IOU token.

Given the speculative nature of the market, the Pi team’s stance on exchange listings suggests that traders should proceed with caution until the network officially launches its cryptocurrency.