Pi Network’s price has staged an impressive recovery over the past ten days, climbing as the broader crypto market stabilizes and investors resume dip buying. The viral tap-to-earn coin surged to a high of $0.755 on Monday, marking its strongest level since March 29 and reflecting a 92% rebound from its lowest price this year.
Strong Rebound After Intense Sell-Off
The resurgence comes after a prolonged downtrend that followed the Pi Network’s mainnet launch. During this period, many early users, known as Pioneers, began selling off their mined coins. Market sentiment was further dampened by the absence of significant centralized exchange listings and increasing concerns about token dilution.
According to data from PiScan, over 1.56 billion PI tokens are expected to be unlocked over the next 12 months, potentially exerting downward pressure on the price as supply increases.
Technical Breakout Signals Recovery
The four-hour chart reveals that Pi Network’s price breakout followed the formation of a falling wedge pattern a bullish reversal signal characterized by converging downward-sloping trendlines. The breakout also pushed the price above the 50-period Exponential Moving Average (EMA) and the Woodie pivot point, both signs of growing momentum.
Caution Ahead: Rising Wedge & Bearish Divergence
Despite the short-term optimism, technical indicators now suggest a possible pullback. The coin is showing signs of forming a rising wedge, a bearish pattern that often precedes a downward move. Additionally, the Percentage Price Oscillator (PPO) is nearing a bearish crossover, and the Relative Strength Index (RSI) has started to trend lower, signaling weakening momentum.
If the bearish setup plays out, the price could retrace toward its all-time low of $0.3979, representing a potential 47% decline from current levels.
Key Resistance and Bullish Scenario
Still, bulls have a chance to reclaim control if Pi breaks above the initial resistance level at $0.8610, the next key Woodie pivot point. A successful breakout here could open the path toward the psychologically important $1 mark, which would represent a 32% upside from current prices.
Final Thoughts
Pi Network’s recent rebound has caught the attention of traders and retail investors alike. However, with dilution concerns and bearish patterns on the chart, caution is warranted. Investors should closely monitor resistance and support levels, especially as Bitcoin continues to hover above $80,000 and the broader market remains in flux.
