The recent Bitcoin pullback has triggered a strong sell-off among many altcoins. Pi Network price has been one of the most affected as it crashed by 40% from this month’s high. So, why is the Pi coin falling and will it bounce back soon?
Pi Network Price Slips Amid Worrying Technicals
The Pi Network price has dropped for four consecutive days as it faced substantial technical pressure. It nearly formed a double-top chart pattern, which is characterized by two peaks and a neckline. In its case, it peaked at $91.69 on November 23, a few points below the previous peak of $99.
The neckline of this pattern is at $44.96, its lowest level on November 12. In most periods, this is a popular bearish reversal chart pattern. In Pi coin’s case, more downwards will be confirmed if it clashes below the neckline at $44.96.
On the other hand, a volume-supported movement above this month’s high of $91.70 and the previous peak at $99 will lead to substantial upside in the next few weeks.
Pi Network’s retreat also happened after it formed an inverted hammer or a shooting star pattern. This pattern, which formed on November 23 is characterized by a small body and a long upper shadow and is a common reversal sign.
Pi coin price then formed a doji-like candlestick pattern on November 24. This doji is made up of a tiny body and long upper and lower shadows and is also a bearish pattern. Also, it has now formed the three black crows pattern, which is a sign of more downside.
Pi Coin Price Could Rebound Amid Mainnet Launch Hopes
On the positive sign, Pi Network price has remained above the 50-day Exponential Moving Average (EMA) pointing to a potential rebound.
Pi price may also bounce back ahead of the upcoming mainnet launch. This is a process where the network moves from its enclosed mainnet to the public mainnet. In this, pioneers will be able to sell their coins and make purchases in the ecosystem.
The first important milestone, the end of the grace period of the Know Your Customer (KYC) verification will end on November 30. This verification is an important part of the process since it will determine the number of pioneers who will receive the coins.
The other key milestone of having a vibrant ecosystem has been achieved as the developers registered over 27,000 businesses ready to accept the coin.
Additionally, the market conditions are conducive for a mainnet launch and an airdrop since Bitcoin is about to hit $100,000. The idea is that the coin will do well if the airdrop happens during a crypto bull run. A good example of this is MemeFi whose price jumped after its airdrop this week
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