Key Takeaways:
- PI coin price rallied sharply in the week beginning Aug 7.
- However, there has been no word from the Pi Network team regarding the mainnet launch.
PATNA (CoinChapter.com) — Pi Network, the blockchain platform that provides mobile device-based mining services, continued to delay the launch of its open mainnet. However, PI coin price started a rally in the week beginning Aug 7, despite a lack of clear bullish cues.
PI coin price spiked by nearly 19% WTD to reach a daily high near $26 on Aug 11 before correcting. The Pi Network token price has formed a bullish technical pattern called the ‘Ascending Triangle.‘
A horizontal trendline that connects swing highs and an ascending trendline connecting swing lows forms an ascending triangle pattern. Volume helps determine if a breakout is strong.
Under ideal conditions, buyers would enter the market as the trendlines close the gap. As a result, the toke’s price would push above the horizontal resistance with heavy volumes.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. If the triangle pattern pans out, the Pi coin price has a theoretical price target of $45.5, a spike of nearly 82% from current levels.
PI Coin Price Rally Retests Resistance
The Pi Network token price’s recent five-day bull run has helped the PI coin recover nearly all its losses in Aug. However, the rally failed to move above the token’s 100-day EMA (blue wave) trendline resistance near $26.4.
The EMA resistance rebuffed the PI coin’s uptrend in July, forcing the token to reach a multi-week low near $21 on Aug 6.
However, if the Pi Network token’s price breaks and consolidates above the immediate resistance, PI coin bulls might help the token target the resistance near $29.38 before retreating.
However, If the PI coin price fails to flip the immediate EMA resistance, the token might drop to the 20-day EMA (red wave) and 50-day EMA (purple wave) support confluence near $22.5. Bulls would likely try to hold the Pi Network token price above the confluence support.
Failure of immediate support level might force the PI coin price to test the support near $21.1 before recovering.
The RSI for the PI coin remained neutral, with a value of $59.71 on the daily charts.
It remained unclear what prompted the Pi Network token’s recent price rally. However, with the team migrating tokens to the mainnet wallet and asking users to do the same, it seems the rally took cues from open mainnet launch speculations.
While Dr. Nicolas Kokkalis continues to give interviews about how vital KYC is, a lack of updates regarding the mainnet launch might result in the hype surrounding the token dying down and the PI coin’s price rally.
