• Pi Network’s token price rallied nearly 48% since July 15 to reach $28.4 on July 24.
• The rally failed to confirm a bullish technical pattern called the ‘Ascending Triangle’, and the cues behind the rally were unclear.
• The platform has yet to launch its open mainnet, hampering Pi coin price action.
Pi Network Token Price Spikes 48%
Pi Network’s token price surged nearly 48% from July 15 to reach $28.4 on July 24, reaching its highest level since May 1 this year. However, the rally failed to confirm a bullish technical pattern called an ‘Ascending Triangle’. Despite this, it is unclear what caused the recent surge in prices.
Formation of Ascending Triangle Pattern
An ascending triangle pattern forms when there is a horizontal trendline linking swing highs and an ascending trendline connecting swing lows. Generally, under ideal conditions, buyers enter the market as these two trendlines close the gap, pushing up the token’s price above the horizontal resistance with heavy volumes. In this case however, Pi Coin’s breakout was low-volume which resulted in a pull back in prices instead of confirming the bullish pattern target of over 45%.
Delay in Mainnet Launch Hampers Price Growth
Pi Network has yet to launch its open mainnet which has adversely affected its token price action. Despite several dApps launching on Pi Network’s testnet such as ‘Pi Chain Mall’, ‘Voice of Pi’ etc., prices remained mostly flat prior to the surge beginning July 15th. This suggests that until mainnet launches, it will be difficult for PI coin prices to show sustained growth momentum.
Potential Impact of Mainnet Launch on Prices
Once launched, KYC implementation could potentially create more value for PI coin holders by increasing demand for tokens as well as introducing new features and functionalities into their ecosystem such as staking mechanisms or decentralized exchanges (DEX). These aspects could attract more investors and help boost demand for PI coins resulting in higher prices than before.
The recent surge in Pi Coin’s token prices may have been driven by speculation regarding its upcoming mainnet launch rather than any particular news or updates released by company insiders or other third parties. Until then however, it remains difficult for PI coin prices to show sustained growth momentum beyond current levels without any fresh catalysts driving them higher from here on out.