Analyst Predicts Pi Coin Price Crash to $0.16: Is Comeback Possible?

Analyst Predicts Pi Coin Price Crash to $0.16: Is a Comeback Possible?

The cryptocurrency market is witnessing heightened volatility, with Pi Coin (PI) drawing significant attention due to its recent price movements. Once reaching a peak of $2.96, Pi Coin has experienced a substantial decline, currently trading at approximately $0.625033. This downturn has prompted analysts to scrutinize its future trajectory, with some predicting a potential drop to as low as $0.16.

Current Market Performance

Pi Coin's price has seen a notable decrease, falling nearly 3% today from a 24-hour high of $0.6577 to $0.6357. The trading volume has also diminished by over 12%, settling at $56 million, indicating reduced market activity. Data from CoinGlass reveals that Pi Coin's Open Interest has plummeted by more than 50% since its mid-March peak, reflecting waning trader enthusiasm.

Source: CoinGlass

Despite the recent downturn, Pi Coin has managed to gain approximately 9% over the past 30 days, reaching a monthly high of $1.62. However, the weekly chart indicates a slump of around 10%, underscoring the asset's volatility.

Technical Analysis: Potential Drop to $0.16

Analyst Weslad has highlighted a descending triangle pattern forming in Pi Coin's price chart, a structure typically viewed as bearish. This pattern suggests that if Pi Coin's price breaks below the $0.38 support level, it could potentially decline further to $0.16. Weslad notes that the $0.16 mark could serve as a significant demand zone, possibly triggering a rebound.

The analyst also mentions that this movement could complete a WXY corrective pattern, commonly observed in complex downtrends. Until a decisive breakout occurs, traders might consider "playing the range" as the structure matures.

Potential for Recovery

While the immediate outlook appears bearish, there are scenarios where Pi Coin could experience a resurgence. A breakout above the triangle's upper trendline could shift the narrative to a bullish one. In such a case, Pi Coin would need to surge to $0.92 and potentially reclaim the $3.04 zone. If momentum holds, some analysts even foresee the possibility of a long-term rally to $23.

Source: TradingView

Additionally, the Relative Strength Index (RSI) indicates an oversold condition, suggesting that a reversal could be on the horizon. A decisive close above $0.66 could confirm a reversal and potentially initiate a short-term rally.

Community Sentiment and Upcoming Developments

The Pi Network community remains actively engaged, despite the recent price decline. Many members are looking forward to the anticipated announcement on June 28, known as Pi Day 2. Analyst Dr. Altcoin suggests that a significant update from the Pi Core Team could serve as a catalyst for price recovery. Conversely, the absence of such an announcement might lead to further declines, potentially pushing the price below its all-time low of $0.40 .

Furthermore, the upcoming months may see reduced token unlocks, which could alleviate selling pressure and support a price rebound. With less inflow into the markets, the selling pressure might subside, aiding in a strong recovery in Pi Network's value.

Conclusion

Pi Coin stands at a critical juncture, with technical indicators pointing towards a potential decline to $0.16 if key support levels fail. However, the possibility of a bullish reversal exists, contingent on positive developments and market sentiment. Investors and traders should closely monitor upcoming announcements and technical patterns to make informed decisions.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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