Pi Coin has languished at $0.385, a shadow of its $3 peak in February, but technical signals suggest the beaten-down token may be gearing up for a sharp rebound.
Despite fading hype and dwindling volumes, Pi Coin’s chart is flashing signs of strength. A bullish falling wedge pattern and Wyckoff accumulation phase hint at a possible breakout, with bulls eyeing $1 — a 165% gain from current levels. With volatility indicators tightening and potential catalysts such as a Binance or Upbit listing on the horizon, Pi may be nearing the end of its sideways grind.
Summary
- Pi crypto price has formed a falling wedge chart pattern.
- It is also in the accumulation phase of the Wyckoff Theory.
- The token will likely have a strong bullish breakout to $1 soon.
Pi Network price technical analysis
The Pi Network token has continued to underperform the crypto market this year as it plunged by over 85% from its all-time high of $3.
Pi Coin (PI) was trading at $0.385 on Sunday, Aug. 17, remaining inside a range it has been in the past few months. Its daily trading volume has dropped, while the initial hype has eased.
The daily chart shows that the Pi coin price has declined significantly since February, when it reached a peak of $3. Its crash was so severe that it did not participate in the bull runs in April and this month.
However, technicals suggest that it has more upside in the coming weeks as it has formed the highly bullish falling wedge pattern. The upper side of this wedge connects the highest swings since May 21.
Its lower side links the lowest swings since June 13 this year. A bullish breakout normally happens when the two lines are about to converge, which is about to happen.
Therefore, the Pi coin price is likely to experience a strong bullish breakout, with the next target to watch being $1, which is 165% above the current level. The bullish forecast will become invalid if it drops below the lower side of the wedge at $0.3167.
Wyckoff Theory points to more gains
The other main reason why the Pi crypto price may surge soon is that it is in the accumulation phase of the Wyckoff Theory.
Wyckoff identifies four stages that assets go through, including accumulation, markup, distribution, and markdown. Sideways movements, low volatility, and volume characterize accumulation.
The chart below confirms that it is in the accumulation phase. Its volume, which is shown in green, has been in a downward trajectory this year.
Additionally, the Average True Range, one of the most effective volatility indicators, has declined. The three lines of the Bollinger Bands have also converged.
Therefore, the Pi coin price will likely experience a parabolic rise as it enters the markup phase of the Wyckoff Theory.
A potential catalyst for a Pi coin price surge will be a listing by one or more tier-1 exchanges, such as Upbit and Binance. Historically, cryptocurrencies soar after being listed by these exchanges.
Another potential catalyst could be a major partnership or a token burn announcement.