Pi Network price remained in a tight range this week, even as Bitcoin and other altcoins plunged.
Summary
- Pi Network price remains in a deep consolidation this week.
- Bollinger Bands and the Wyckoff Theory suggest a potential rebound.
- The bullish outlook is supported by the ongoing whale accumulation.
Pi Coin (PI) token was trading at $0.2250 today, inside a range it has remained in the past few weeks. This article explores the top three reasons why the token is ripe for a bullish breakout.
Pi Network price technicals points to a rally
The daily timeframe chart shows that the Pi coin price has formed a small double-bottom pattern at $0.1948 and a neckline at the October high of $0.2930. A double-bottom is one of the most common bullish reversal patterns in technical analysis.
Additionally, the spread of the three lines of the Bollinger Bands indicator has narrowed this month. That is a sign that it has limited volatility and that it has a high chance of having a short-squeeze.
Most importantly, the ongoing consolidation is a sign that the coin is in the accumulation phase of the Wyckoff Theory. This pattern normally leads to a strong bullish breakout as it moves to the markup phase. A good example of this is the recent Zcash price surge.
Pi Coin may benefit from the ongoing whale accumulation
The other potential catalyst for the Pi Coin price is the ongoing buying spree by its biggest whale. Data shows that the whale bought over 900k tokens on Monday as the crypto market crash intensified. This whale now holds tokens worth over $85 million.
The ongoing whale buying is crucial as it signals that this investor is highly bullish on the coin since it has already plunged by over 90% from its highest level this year. Notably, since his identity is not known, there is a slim chance that he is an insider who has key information on its future.
Pi ecosystem growth
Stanford PhD graduates Nicolas Kokkalis and Chengdiao Fan created the Pi Network on Pi Day in 2019.
Vincent McPhillip also made contributions, but later departed the project. Since then, there have been signs that Pi Network is evolving from a mere ghost chain into one with a clear utility.
One sign of this is the recent investment in OpenMind, a company at the intersection of robotics and artificial intelligence. The investment aims to connect Pi Network’s global decentralized node ecosystem with OpenMind’s robotics technology, enabling a shared computational and economic framework for both humans and machines.
According to OpenMind CTO Boyuan Chen, “Our mission has always been to create open infrastructure for intelligence that exists in the real world, not just in the cloud. Working with Pi Network helps us extend that idea across both robotics and decentralized computing.”
As part of the investment, the two teams conducted a trial on how Pi Network’s node operators can contribute their resources to third parties and earn returns. If successful, the investment will give Pi Network coin more utility.
Additionally, the team recently announced major improvements, including the DEX and AMM testnet. Once completed, participants will be able to trade within the Pi Network ecosystem.
There are other potential catalysts for the Pi Network price, including major exchange listings, a token burn announcement, or a major partnership.
