Pi Network Price at Risk of a 35% Crash as CEX Reserves Jump

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Pi Network Price at Risk of a 35% Crash as CEX Reserves Jump

Highlights

  • Pi Network price remains in a consolidation phase this month.
  • Technical analysis points to an eventual 35% crash to its lowest point last week.
  • Pi crypto volume has crashed, while exchange inflows have soared.

Pi Network price continues its consolidation today, June 16, as traders wait for a catalyst. The Pi crypto token trades at $0.6, and there are odds that it may crash by 35% and retest its lowest point last week. Its volume has plunged, a sign of low demand, while inflows into centralized exchanges have jumped. 

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Pi Network Price Technical Analysis Points to a Crash

The eight-hour timeframe shows that the Pi Network price has largely moved horizontally since May. This consolidation happened after it plunged following its surge in May when the developers promised a major announcement.

Technicals suggest that the PI crypto token’s volatility has dried. The spread between the three lines of the Bollinger Bands indicator has narrowed substantially, while the Average True Range (ATR) has plunged.

Bolnger Bands and the ATR are the most popular volatility indicators in technical analysis. The ATR quantifies the average range of a price movement, accounting for gaps and other fluctuations. A declining ATR is a sign that the volatility has dropped.

The Bollinger Bands indicator is calculated by first establishing the moving average and then its positive and negative standard deviations. In most cases, an asset often makes a bullish or bearish breakout when the spread of the three lines narrows.

In Pi Network’s case, there is a likelihood that it will have a bearish breakout since it remains below the 50-period moving average. If this happens, the next Pi crypto price target to watch will be last week’s low of $0.40, which is about 35% below the current level.

Pi Network Price Chart
Pi Network Price Chart (Source: TradingView)

The bearish Pi crypto price forecast will become invalid if it rises above $0.8031, the highest swing on May 26. A move above that level will point to more gains, potentially to the psychological point at $1.

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Pi Crypto Volume Has Crashed While CEX Reserves Have Risen

The likely bearish catalyst for the Pi Network price is that demand has dropped in the past few months. CoinMarketCap data shows that the 24-hour volume tumbled by 44% to $59 million. Pi had a daily volume of over $3 billion during its peak. This demand drop is happening at a time when token unlocks are rising, with millions of tokens being released each day.

More data reveals that investors are moving their tokens from self-custody and dumping them into exchanges. Traders deposited 6.11 million tokens into exchanges in the last 24 hours and moved out 3.8 million. This led to a netflow of over 2.27 million tokens. An increase in exchange inflows is a sign that these investors are dumping them.

Pi Network Inflows and outflows
Pi Network Inflows and outflows (Source: PiScan)

Still, there is a risk in shorting Pi Network. For one, an exchange listing by a company like HTX, Upbit, or Binance can happen at any time, leading to a triple-digit short squeeze. 

The other risk is that the Pi Day 2 is coming next week, which may lead to major announcements that may push it higher.

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Frequently Asked Questions (FAQs)

1. Why is Pi Network price at risk of a 35% crash?

Pi Network price may crash as outflows to exchanges jump and demand from investors fall. It may also drop as token unlocks rise.

2. Can Pi crypto price jump to $1?

The Pi token may bounce back and hit $1 in the near term as traders wait for the Pi Day 2.

3. Will Binance list Pi Network token?

Chances are that Binance will not list Pi Network soon because of its concerns about its centralization.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.