The Contrarian Bullish Case for Pi Network Coin Price

Pi Network coin price has moved from being one of the most popular cryptocurrencies into the biggest fallen angel today. It is hovering near its all-time low after plunging by nearly 90% from its February highs, leading to a $15.7 billion wipeout as the market plunged from $18.4 billion to $2.6 billion.

Pi Coin has crashed amid major issues with its network, including the relentless unlocks, lack of an ecosystem, and the fact that no exchanges have listed it since the mainnet launch. Still, this article makes three critical suggestions why the Pi Network coin price could be on the cusp of a breakout.

Pi Network Coin Price Has Contrarian Technicals

The daily timeframe chart shows that the value of Pi initially went parabolic for a few days after its mainnet launch in February, ultimately reaching its all-time high of $2.9.

It has been in a free fall since then, leading to substantial losses among pioneers who maintained their holdings after the mainnet launch. It crashed to a low of $0.3400 earlier this month as the sell-off gained steam.

On the positive side, there are signs that this sell-off could be nearing its end as the token has formed numerous bullish patterns. The most notable one is known as the falling wedge, and is made up of two descending and converging trendlines.

This pattern normally signals that the recent bearish trend is losing steam, and in most cases, it results into a strong bullish breakout, especially when the two lines are nearing their convergence points, which is now happening.

Zooming the chart shows the Pi coin price has also formed a small double-bottom pattern at $0.3360 and a neckline at $0.4660. Like a wedge pattern, a double-bottom is a highly bullish reversal chart pattern.

There are also signs that the Pi Network is in the accumulation stage of the Wyckoff Theory. In this stage, an asset experiences low volatility and volume, and is then followed by the markup phase, which is characterized by vertical movement, as we saw with OKB and Bio Protocol recently.

Therefore, if these bullish catalysts work out, the Pi Network price will surge, with bulls targeting the important psychological level at $1.

Pi Coin Could Benefit From a Major Token Burn

A token burn is a situation where cryptocurrencies are moved into an inactive address that cannot be accessed. It is one of the most common approaches that cryptocurrency projects create value by reducing the circulating supply.

The Binance Coin price has surged over time since the developers launched the quarterly burn that aims to reduce the circulating supply to 100 million from 139 million today. Most recently, OKB price surged by over 300% after the developers launched a token burn that reduced the circulating supply to 100 million.

Fortunately, Pi Network could do a similar thing by launching a major token burn. It can do that by incinerating tokens that have not been claimed so far, which are in the billions.

Pi Foundation, which holds over 90 billion Pi tokens, could decide to burn some of these tokens, a move that would be mutually beneficial. Unlike other cryptocurrencies, the foundation can do this unilaterally since it is a highly centralized network.

Potential Pi Network Exchange Listing

Another potential catalyst that could move the Pi Network coin price is the possibility of being listed on major tier-1 exchanges, such as Binance and Upbit.

This is a possibility because, despite its recent crash, Pi is still one of the most popular cryptocurrencies in the industry, and its listing would generate substantial fees for them.

There are other potential catalysts for the Pi Network price, including its ecosystem growth, especially after the recent initiatives like the Pi Network Ventures, which has over $100 million in assets, and the ongoing hackathon where developers are competing on building apps for the ecosystem.