Pi Network (PI) price surges 92% as the crypto market stabilizes

Pi coin (PI), the viral tap-to-earn coin, rose to a high of $0.755 on Monday, its highest level since March 29. It has soared by 92% from its lowest level this year.

Cryptocurrencies have been closely watched by many investors. Among the best-performing tokens in the past ten days is Pi Network (PI), the viral tap-to-earn coin, which has staged a strong comeback as the crypto market stabilizes and investors buy the dip.

Pi coin (PI), the viral tap-to-earn coin, rose to a high of $0.755 on Monday, its highest level since March 29. It has soared by 92% from its lowest level this year.

Before this rebound, the coin was in a strong downtrend as many pioneers started selling their coins. Pioneers are users who were mining the coin before the mainnet launch in April.

It also dropped after centralized exchange listings became elusive and as concerns about its dilution continued. As shown below, over 1.56 billion tokens will be unlocked in the next 12 months, leading to more dilution.

Pi Network (PI) price chart

The ongoing Pi recovery happened as Bitcoin (BTC) and some other coins remained resilient. Bitcoin has held steady above $80,000 even as the stock market and the fear and greed index plunged.

The four-hour chart shows the coin also surged after forming a falling wedge chart pattern. This pattern is made up of two descending and converging trendlines, with the bullish breakout happening when the two lines are close to their confluence level.

On the positive side, the coin has moved above the 50-period Exponential Moving Average, a sign that it is gaining momentum. It has also moved above the Woodie pivot point.

However, there are emerging signs that could indicate a potential reversal. The price has now formed a rising wedge pattern, with the lower trendline connecting the higher lows established since April 5. In technical analysis, a rising wedge is deemed a reliable bearish pattern.

Moreover, a bearish divergence appears to be unfolding. The Percentage Price Oscillator is on the verge of a bearish crossover, and the Relative Strength Index has commenced trending downward.

As a result, Pi may be vulnerable to a substantial pullback, with the subsequent crucial support level located at the all-time low of $0.3979, approximately 47% below present levels.

Nevertheless, this bearish outlook would be invalidated if the price manages to break through the first resistance at the Woodie pivot point, which is at $0.8610. In that scenario, the next upside target would be the psychologically significant $1 mark, about 32% above today’s price.