Pi Network price remained steady this week as sentiment in the crypto market remained weak and as token unlocks continued.
Summary
- Pi Coin price may have a short squeeze in the coming weeks as the spread of the Bollinger Bands narrows.
- The token seems to be in the accumulation phase of the Wyckoff Theory.
- It has also formed a double-bottom and a falling wedge pattern.
Pi Coin (PI) token was trading at $0.3420 on Thursday, inside a range it has remained in since August. Still, Bollinger Bands, a double-bottom, and the Wyckoff theory point to a squeeze in the coming weeks.
Pi Network price technicals point to a rebound
The daily timeframe chart shows that the spread of the three lines of the Bollinger Bands has narrowed in the past few weeks. Bollinger Bands is made up of three lines, with the middle one being the simple moving average.
The upper band is the SMA plus the standard deviation of the price, while the lower one is the SMA minus the standard deviation. The thinning Bollinger Bands are a sign that volatility has fallen. In most cases, the narrowing spread leads to a short squeeze, as it did in May.
Pi Network price has also formed a double-bottom pattern at $0.3235. This pattern often leads to a bullish reversal, as it signals that bears are hesitant to place short bids below that price.
Most notably, the Pi token is in the accumulation phase of the Wyckoff Theory. This phase is characterized by low volume, sideways movement, and multiple tests of key resistance levels.
The coin has also formed a falling wedge pattern. Therefore, the token will likely have a strong bullish breakout this month. Such a move may push the token to $1, up by nearly 200% from the current level.
Why Pi Coin price may rebound this month
Pi Network may rebound, helped by key catalysts. The first catalyst is that it may benefit from the potential crypto bull run when the Federal Reserve starts cutting interest rates.
There are also signs that the coin is highly undervalued as its MVRV ratio remains below 1. MVRV is a crucial number that compares the market value and the realized value, with a figure of less than one being a sign that it is cheap.
The most important catalyst is that Pi Coin may benefit from a potential listing by one or more crypto exchanges. Such a move would trigger a triple-digit short squeeze.
