NOIDA (CoinChapter.com)— Pi Network continues to surprise its followers, or rather, its native token PI does, as the Pi Coin price jumped. The PI coin, which had previously dropped to $0.5 across major charting platforms, is now trading near its IOU price of $47.
Before everyone gets excited, no, the open mainnet has not yet launched. The launch date is sometime in June 2024. The Pi Network recently announced it completed the KYC process for 10 million users out of 15 million, a requirement for the open mainnet launch.
However, the reason that the Pi Coin price jumped is something else entirely.
PI Coin Price Recovers
Firstly, strictly speaking, there is no such thing as a PI coin. Until the mainnet launches, the mined Pi Network tokens hold no value.
Since the Pi Network remains a testnet, the PI coins trading on exchanges like HTX and BitMart are IOUs, as in traders exchanging promissory notes rather than the actual token itself. Hence, the entire PI coin market is currently based purely on speculation.
The Pi Network token’s IOU value recently fell over 98% on CoinMarketCap, though the charting website’s data showed the price drop occurred only on some exchanges.
CoinMarketCap included the PI coin price only from HTX and BitMart, the two exchanges that account for nearly all of the PI coin IOU trade. Excluding other exchanges seems to have solved the problem of fluctuating Pi Network token prices.
CoinMarketCap stated that it had included some exchanges from the overall price and volume calculation, while the PI coin price on some exchanges differed “significantly” from its IOU price.
Meanwhile, selling pressure for the PI coin seems to be high, given the number of users willing to sell their tokens on the social media platform X.
Most of these requests for selling or buying would likely turn out to be scams, which many users from Vietnam have recently faced.
The PI Network token has the largest following in Vietnam. These scams take various forms, from deceptive sales tactics to fraudulent investment schemes, preying on the growing enthusiasm for Pi currency.
Users with bucketloads of PI coins have nowhere to go with their holdings, and they often fall prey to scammers who promise to buy the token off their hands.
PI IOU Price Paints A Marginal Recovery
Meanwhile, PI coin, trading as IOUs on exchanges, showed a slight recovery as the token started rallying on April 18. It seems some of the excitement of Bitcoin halving seeped into the PI coin market.
The PI coin price rallied over 14% to a daily high near $49 on April 22, likely reacting to the token’s price correcting on CoinMarketCap. However, the Pi Network token price pared gains later in the day.
If the rally continues, PI price could rally to the resistance near $51.6. Flipping the immediate resistance might help PI coin price target the resistance near $61.
On the other hand, a downtrend from here would put PI coin price near the support level at $41. Breaching the immediate support could force the Pi Network token price to test the support near $33.6 before recovering.
However, it is likely that PI coin price would remain range-bound in the absence of any major bullish cues.
The RSI for PI remained neutral, with a score of 61.21 on the daily charts.
