Key Takeaways:
- Pi Network coin price has formed a bullish technical pattern
- However, continued delay in the mainnet launch might harm the PI coin rally.
NEW DELHI (CoinChapter.com) — Blockchain platform Pi Network’s native token, PI, has formed a bullish technical pattern called the ‘Bull Pennant.‘
A bull Pennant is a bullish continuation pattern that emerges when an instrument consolidates between two converging trendlines after undergoing a price rally. Ultimately, a breakout in the direction of the large initial movement follows the period of consolidation.
However, it is important to note the volume. As in, volume during consolidation should be low while it must increase during the breakout move. Otherwise, prices are more likely to pull back into the consolidation pattern.
If Pi Coin price breaks out of the bull pennant, it would theoretically set a price target near $37.4, at least 61% higher than its current prices.
However, PI Coin price has failed to needle above the 50-day EMA (purple wave) trendline resistance since May 2023. If the downtrend continues, Pi Network token price might drop to support near $21.65.
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Moreover, breaching the immediate support level could result in the Pi crypto token price falling to test support near $19.7 before recovering.
On the other hand, if the Pi Network token starts rising, PI coin price might rally to its 50-day EMA resistance near $24.5. Moreover, breaking and consolidating above the immediate resistance might help the Pi coin price target resistance near $27.54 before downside corrections pare gains.
The RSI for Pi coin remained neutral, clocking at 46.13 on the daily charts.
Pi Network Grows, But Token Needs More Bullish Cues
Pi Network recently announced that the Pi community, or ‘Pioneers,’ had grown to over 47 million users. Furthermore, the network announced new initiatives on June 28, or Pi2 Day (6-28). Pi Network announced a ‘Utility Challenge,’ which would involve community members completing a list of 11 tasks.
The tasks aim to incentivize interactions with recent apps and “foster utility creation and ecosystem building,” Pi Network said in an announcement.
Users who complete the 11 tasks will enter a raffle with a chance to win a “limited-edition Pi2Day t-shirt, among other meaningful awards.“
However, the Pi Network’s main net launch remains delayed, which could dampen investor interest in the Pi coin. As such, it would be difficult for the Pi Coin price to rally upward. Conversely, the mainnet launch might help the Pi crypto token price confirm the pattern.
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