Pi Network price has crashed in the past few days, moving from a record high of $3 to $1.6175. This crash plunged after the developers announced another KYC grace period extension and as the Binance listing remained elusive. Still, Pi coin price has formed an encouraging pattern, pointing to a rebound.
Pi Network Price Pattern Points to a Rebound
The hourly chart shows that the Pi coin price peaked at $3.01 on February 25. It has moved below the 25-period Exponential Moving Average (EMA), a sign that the downtrend is continuing.
Most importantly, Pi Network price has formed a falling wedge chart pattern, a popular bullish reversal sign. The upper side of this pattern links the highest swing since February 27, while the lower line links the lowest points since February 25.
The two lines are about to meet, while the token has moved slightly above the upper side of this wedge.
The Pi coin price has formed a small double-bottom pattern at $1.6213, with a neckline at $1.9640. It has also found support near the 61.8% Fibonacci Retracement point at $1.5100.
Therefore, the token is likely to have a strong bullish breakout. The next level to watch is 3, its highest level on record, which is about 85% from the current level.
Why Did the Pi Coin Price Crash?
The Pi coin price has crashed for three main reasons. First, it has dropped because the developers decided to postpone the grace period of the Know Your Customer (KYC) period until March 14.
This is the third time that the developers have extended this period. The developers hope the extension will help more pioneers migrate their tokens to the mainnet.
Second, the Pi Network price has plunged as the Binance listing remained elusive. However, a Binance listing may still be coming, as members of the community voted in favor of it by a wide margin.
Third, Pi has dropped because of the ongoing weakness in the crypto market caused by Donald Trump’s tariffs. These tariffs will lead to slow economic growth and high inflation and put the Fed under pressure to act.
On the positive side, besides its strong technicals, Pi Network price may rebound because of the potential Binance and other CEX listings. Also, there are signs that some merchants in countries like China, Vietnam, and South Korea have started to accept Pi coin, which may continue this year.
Pi Network may also benefit from the upcoming Trump crypto summit and his decision to create a crypto reserve. A far-fetched idea is where Pi is also included in the strategic crypto reserve since it is a Made in USA crypto coin.
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