Top 4 Reasons Pi Network Price May Rebound in Q4

Pi Network price has plunged in the last three quarters as it shed billions of dollars worth of value. It plunged to a record low this week, bringing its market capitalization to $2.1 billion, down from the all-time high of nearly $20 billion.

Still, there are contrarian reasons why the value of Pi Coin may stage a strong rebound in the fourth quarter. Some of the reasons are its technicals, ongoing whale accumulation, and a potential exchange listing.

Pi Network Price Technical Analysis

The daily timeframe chart shows that it has some contrarian reasons that could trigger a rebound. One of these is that it has slowly formed a falling wedge pattern, which often leads to a strong rebound.

The coin dropped below the lower line of the wedge this week. While this was a bearish thing, it could have been a false breakout or shakeout that ultimately leads to a strong breakout.

The Relative Strength Index (RSI), a common oscillator, has plunged to the oversold level at 25, its lowest level since August 1. It is common for a highly oversold asset to bounce back over time.

The other bullish catalyst is that the coin is showing signs of being in the accumulation phase of the Wyckoff Theory. This phase is made up of sideways movements and low volatility as evidenced by the spread between the three lines of the Bollinger Bands.

Therefore, the Pi Network price will likely have a strong bullish breakout. If this happens, the potential target it may retest is the psychological point at $1. A move from the current level to $1 would be a 282% above the current level.

Pi Coin Whale Accumulation is a Catalyst

Another major catalyst that could push the Pi Network price higher in the fourth quarter is the ongoing whale buying. What is notable is that only one mysterious whale is accumulating the coin.

This whale now holds over 383 million coins and is the biggest holder apart from the team. Therefore, the most likely scenario is that this whale has some confidential information of a major catalyst.

This case is based on the size of the whale, as he has spent over $100 million in his purchases. Odds are that someone who spends all this money in this accumulation knows something that the public does not know.

One potential buyer is a leader of a major exchange who knows that it will list it. Another person who may be buying Pi is an insider.

Potential Pi Network Exchange Listing

The other main catalyst that may push the Pi coin price value higher is the slim chance that one or more exchanges will list it. This is notable since no tier-1 exchange other than OKX has listed it since its mainnet launch in February.

Historically, cryptocurrencies tend to jump by double or triple digits after being listed by a major exchange. Pi, as one of the most popular cryptocurrencies, would likely have a bigger jump after its exchange listing.

Q4 is the Most Bullish Periods of the Year

The other main reason why the Pi Network price may jump in Q4 is that this is usually the most bullish quarter for the crypto industry.

Data compiled by CoinGlass shows that Bitcoin price jumped by 47% in the last Q4 after rising by 56% in the previous one. The average Q4 return since 2013 is 85%.

Bitcoin price performance in Q4 | Source: CoinGlass

Mot notably, the fourth quarter will coincide with more Federal Reserve cuts and friendlier regulations. For example, regulators may allow retirement accounts like 401ks to invest in the crypto market.

Still, Pi Network price has some risks. For example, it is one of the most inflationary tokens, releasing millions of tokens each day. It is also highly concentrated, with the Pi Foundation having the most power.