Pi Network (PI) Price Prediction as It Drops Below the 50-Period SMA

Pi Network price has experienced volatility in the past few weeks, with the much-anticipated Pi Day event failing to boost it.

The price of Pi Network (PI) has been experiencing volatility in recent weeks, with the much-anticipated Pi Day event failing to provide the expected boost.

On Monday morning, the Pi coin token was trading at $1.3880, down over 53% from its highest level this year. As the bears continue to exert pressure, technicals suggest that the Pi price may be on the cusp of a big rebound.

Pi Network price analysis

The four-hour chart shows that the Pi coin price has seen a decline from the year-to-date high of about $3.00 to the current $1.3915. It has moved below the 50-period simple moving average, indicating that bears are in control.

Moreover, the Pi coin token dropped below the 61.8% Fibonacci Retracement level at $1.5272. This move lower signals that bears are prevailing as the Pi Network loses momentum following its mainnet launch.

The silver lining is that the token appears to be forming an inverse head and shoulders pattern. This pattern comprises three key sections: head, shoulders, and a neckline. It is now forming the right shoulder section of this pattern.

It is possible that the Pi coin price will bounce back in the coming days. A strong bullish breakout will be confirmed if it rises above the key resistance level at $1.7940, the highest swing on March 13. Such a move could clear the path for the Pi token to exceed $2.

The bullish view will be invalidated if the Pi Network price crashes below the key support at $1.2232, the lowest swing on March 9 and the head of the inverse H&S pattern.

Potential drivers for the Pi coin price

There are a few reasons why the Pi coin price may rebound and potentially hit its all-time high.

First, the developers continued to create utility for the Pi Network by launching a new platform-level utility in the form of .pi domains. Pioneers and other holders can now reserve their .pi domains for their businesses, shops, and brands.

The .pi domains aim to be more successful than ENS domains like .eth, which are used in the Ethereum network. It hopes that most shops and brands accepting the Pi coin will embrace the domain.

Second, Pi Network may benefit from the macro level as the Federal Reserve and other central bank decisions approach. Top central banks like the Bank of Japan (BoJ) and the Bank of England (BoE) will deliver their decisions this week. A dovish tilt by these central banks will be a bullish thing for risky assets like Pi Network and Bitcoin.

Third, there are chances that the Pi Network will receive several centralized exchange (CEX) listings. Some of the most notable exchanges that may list it due to its popularity are Binance, Coinbase, and Upbit.

Along with its ecosystem growth, these factors may help to increase the Pi Network price in the coming weeks. However, a potential risk is the network unlocking tokens valued at billions of dollars in the next 12 months.