NOIDA (CoinChapter.com)— With rumours swirling around a Pi Day Mainnet launch, the Pi Network price broke out of its consolidation phase to spike 290% in March. The token reached a daily high near $122 on March 13. However, without the mainnet launch, the token still trades on exchanges as an IOU.
Pi Network Price Skyrockets On Mainnet Launch Rumors?
Pi day, or March 14 (3/14), is approaching soon, leading to speculations of a Pi Network open mainnet launch. The mainnet has been Pi Network users’ white whale, with multiple delays causing many to lose faith in the project.
However, a miscommunication from the official Pi Network news handle resulted in speculations of an open mainnet launch on March 14. The news handle jokingly shared that Pi Network would launch the open mainnet in March instead of the previously announced date of June 2024.
Another news outlet, Hokanews, picked up the announcement and shared it as a true story instead of a joke. As a result, traders flocked to the market, propping up the token’s rally and helping it break out of a multi-month consolidation phase.
Interestingly, the Pi News handle had shared that the post was fake, claiming it was “just a glimpse into the future.”
On the other hand, the Pi Network team shared that developers were designing ‘platform-level utilities‘ for the Pi token, which could benefit PI coin once the mainnet launches.
Yet, it will be interesting to see how the token reacts when Pi Network fails to launch the open mainnet on Pi Day.
PI Coin Price Faces Overbought RSI Risks
Meanwhile, the recent rally pushed the relative strength index of PI coin into the overbought region, clocking at 94.75 on the daily charts. The RSI is a momentum indicator for measuring asset price movements to identify overbought or oversold conditions.
Overbought RSI levels and upward-moving average trendlines indicate a strong presence of bulls in the market. However, traders often consider an overbought RSI level a bearish signal since the occurrence usually precedes a bearish correction or consolidation phase for the underlying token.
Furthermore, if the mainnet launch news turns out to be fake, traders would likely dump their holdings to book profits. A sell-off might result in PI coin price dropping to the 0.382 Fibonacci support level near $93.
Moreover, breaching the immediate support could force the Pi Network token price to the support near $69 before recovering.
However, in the unlikely scenario that PI coin price continues rallying, the token would likely rally to the resistance near $133. Breaking above the immediate resistance could help Pi Network price rally to the resistance near $161.
