Pi Network price has experienced volatility in the past few weeks, with the much-anticipated Pi Day event failing to boost it. The Pi coin token traded at $1.3880 on Monday morning, representing a decline of over 53% from its highest level this year. Technical analysis suggests the Pi price may be on the cusp of a big rebound.
Pi Network Price Analysis
The four-hour chart shows that the Pi coin price has retreated from the year-to-date high of about $3.00 to the current $1.3915. It has moved below the 50-period simple moving average, a sign that bears are in control for now.
Further, the Pi coin token has dropped below the 61.8% Fibonacci Retracement level at $1.5272. The move below that level signifies that bears are prevailing as the Pi Network loses momentum after its mainnet launch.
The silver lining is that the token seems to be forming an inverse head and shoulders pattern. This pattern comprises three key sections: head, shoulders, and a neckline. It is now forming the right shoulder section of this pattern.
It is likely that the Pi coin price will bounce back in the coming days. A strong bullish breakout will be confirmed if it rises above the key resistance level at $1.7940, the highest swing on March 13. Such a move could pave the way for the Pi token to exceed $2.
The bullish view will become invalid if the Pi Network price crashes below the key support at $1.2232, the lowest swing on March 9 and the head of the inverse H&S pattern.
Potential Drivers for the Pi Coin Price
There are a few reasons why the Pi coin price may rebound and potentially hit its all-time high.
First, the developers continued to create utility for the Pi Network by launching a new platform-level utility in the form of .pi domains. Pioneers and other holders can now reserve their .pi domains for their businesses, shops, and brands.
The .pi domains hope to be more successful than ENS domains like .eth, which are used in the Ethereum network. It hopes that most shops and brands accepting the Pi coin will embrace the domain.
Second, Pi Network may benefit from the macro level, such as the decisions of the Federal Reserve and other central banks. Top central banks like the Bank of Japan (BoJ) and the Bank of England (BoE) will deliver their decisions this week. A dovish tilt by these central banks will be bullish for risky assets like Pi Network and Bitcoin.
Third, the Pi Network is likely to receive several centralized exchange (CEX) listings. Some of the most notable exchanges that may list it because of its popularity are Binance, Coinbase, and Upbit.
These factors, along with its ecosystem growth, may help boost the Pi Network price in the coming weeks. However, a potential risk is the network unlocking tokens valued at billions of dollars in the next 12 months.
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