Pi Network Price Pumps as Top Expert Points to Manipulation

Pi Network price has staged a strong recovery, making it one of the best-performing cryptocurrencies in the market. The token surged to a high of $0.2940, its highest point since September 22. It has increased by over 67% from its lowest level this year, with one top analyst attributing the rise to market manipulation.

Pi Network Price Jumps as Top Pro Warns it May be Market Manipulation

Pi Coin, which has been on a free fall since its mainnet launch in February, was the best-performing tokenin the crypto market today, Oct. 27.

This rebound coincided with the ongoing recovery of the crypto market, with Bitcoin rising to $116,500 and the valuation of all tokens hitting $3.88 trillion.

There was no major catalyst for the surge in Pi Network prices. As a result, Dr. Altcoin, one of the top Pi analysts, warned that this was likely a case of market manipulation. He pointed to large volumes being transferred to some exchanges like Gate, Banxa, and OKX.

Most notably, he warned that he was not seeing any buying from real investors. Data compiled by CoinMarketCap shows that Pi Network’s volume jumped by 1,055% in the last 24 hours to $112.23 million.

$57 million of this volume was on OKX, with $21 million on Gate. Other exchanges, such as Bitget and MEXC, had less than $10 million each, which may confirm Dr. Altcoin’s thesis of market manipulation.

This is not the first time that Pi Network has been accused of manipulation. The most notable ones occurred in May, when the team announced that it would make a major ecosystem announcement at the Consensus event.

In response, the Pi Network price surged by almost 200% within a few days. The news was the $100 million Pi Ecosystem.

Other Potential Reasons for the Pi Coin Price Rebound

There are other potential reasons why the Pi Network price is bouncing back. First, it could be due to last week’s announcement regarding KYC.

In a statement, the developers noted that a new KYC process had escalated the pace. As a result, 3.36 million more pioneers passed through the process, and the number is continuing to escalate.

Pi Core Team also announced the update to the Pi App Studio, which will make it easy for developers to build applications. This is notable as it will help boost the ecosystem growth.

The developers also launched the decentralized exchanges (DEX), automated market maker (AMM), and liquidity pools features on the testnet. This will make it easy for developers to build dApps like Uniswap and PancakeSwap.

On the negative side, the ongoing Pi Network price surge could be a dead-cat bounce (DCB). A DCB is a situation where an asset in a free fall bounces back temporarily and then resumes its downtrend.

Also known as a bull trap, a dead cat bounce occurs when retail traders buy the dip.

Pi Coin Value Technical Analysis

Technical analysis also explains why the Pi Network price has rebounded in the past few days. This rebound occurred after the token formed a falling wedge pattern, characterized by two converging trendlines that are falling. A bullish breakout normally happens when the two lines are about to converge, which is what happened recently.

The token also formed a bullish divergence pattern. This pattern occurs when an asset is in decline while oscillators are in a slow uptrend.

The True Strength Index (TSI) indicator was moving upwards and has just formed a bullish crossover. Similarly, the Relative Strength Index (RSI) has been in a slow uptrend and has crossed the neutral point at 50.

Therefore, the token will likely rise slightly as retail investors buy, but then resume its downtrend. If this happens, the token may jump to the key resistance at $0.30 and then retest the all-time low.