The price of Pi Coin is currently at a critical point, as the symmetrical triangle chart pattern suggests a 20% price surge could be imminent. Despite recent concerns, including the unlocking of tokens and fears about decentralization, investor interest in Pi Coin has picked up again, particularly after its listing on the US cryptocurrency exchange Kraken. As a result, open interest in Pi Network has increased by nearly $3 million in under 12 hours.
Pi Coin Price Chart Indicates Potential 20% Rise
Pi Coin is trading at $0.739, showing a 4% intraday loss after a recent $2 million Pi token deposit raised investor concerns. However, on the four-hour price chart, Pi Network seems to be preparing for a bullish reversal as it is trading within a symmetrical triangle pattern.
The symmetrical triangle pattern typically indicates indecision in the market, with both buy and sell volumes declining. As of this article's publication, Pi Coin's 24-hour trading volume stood at $122 million, according to CoinMarketCap.
After testing the lower support boundary, the price bounced back upwards, indicating that bulls are targeting the upper resistance line. If an upward breakout occurs, the price of Pi Coin could rise by nearly 20% from the resistance line, reaching $0.92. This breakout will only occur if the bullish momentum from last week returns and buying volumes begin to rise sharply.
Bullish Forecast Relies on Overcoming Resistance at 200-Day SMA
This bullish price prediction for Pi Network also depends on whether the price bounces above the 200-day SMA, which is currently acting as resistance. Looking at previous trends, a price rally usually follows whenever Pi Network successfully holds the 200-day SMA as support. If the bulls manage to break through this resistance, the next target will be the 50-day SMA at $0.86, before the price reaches $0.92.
The main obstacle to this bullish outlook is the support at the lower boundary of the symmetrical triangle. If this support fails to hold, Pi Coin's price could drop to $0.61.
Pi Network’s Open Interest Reaches $21 Million
The open interest in Pi Network has surged and reached $21 million after increasing by over $2.9 million within just six hours, despite uncertainty surrounding Pi Coin’s price. This growth highlights the increased speculative interest in PI, which could serve as a catalyst for future price growth.
The sharp rise in open interest aligns with a sudden shift in funding rates. After briefly dipping into negative territory, Pi Coin's funding rates have once again turned positive, signaling a return of interest in long positions as investors anticipate a rise in price.
The growing open interest coincides with the launch of Pi Coin futures contracts on the K.raken exchange. As Coingape reported, the listing of K.raken Pi Futures on the Pi Futures exchange was a key development for the new token, which has struggled with a lack of bullish catalysts.
In Conclusion: Pi Coin at a Key Inflection Point
In summary, Pi Coin's price is at a critical juncture, with the symmetrical triangle pattern indicating indecision between buyers and sellers, accompanied by declining trading volumes. However, with rising open interest and a potential breakout above the upper trendline of this triangle pattern, a rally could be on the horizon.
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