Pi Network (PI) Price Could Be on the Verge of a Parabolic Rally After Partnering with Stellar to Launch a Stablecoin

Pi Network price could be on the verge of a parabolic rally after Pi Coin partnered with the Stellar network to conduct tests for a stablecoin.

Pi Network (PI) price could be on the verge of a parabolic rally after the crypto project partnered with Stellar (XLM) to conduct tests for a stablecoin.

This partnership might aid a Pi Coin price recovery after the altcoin recorded one of its worst trading weeks since launch.

Pi Network, the crypto project that launched its mainnet earlier this year, saw PI coin decline by 17%. This downturn occurred after a period of consolidation following a 300% rally from the December 2022 lows.

Several reports suggest that the Pi Network development team could be working on launching a stablecoin in partnership with the Stellar blockchain, which aims to enable cost-effective money transfers.

Members of the Pi Network community identified a smart contract code that suggested such a partnership deal would happen soon. At the same time, another report indicated that a Pi Coin stablecoin was being tested on the Stellar mainnet environment.

Earlier this month, Coingape reported that Pi Network was working on a price pegging mechanism. This mechanism is used with stablecoins such as USDT and USDC and would bolster Pi Coin’s use as a means of payment.

The reports of a Pi Coin stablecoin testing on Stellar come after Pi Network was integrated into the Telegram network. Some community members noted that the integration was a “historic step toward mass adoption of decentralized finance.”

These developments suggest that Pi Coin is acquiring some strong fundamentals, which can aid a price recovery.

Can Pi Network Price Rally 40%?

Pi Network price trades at $0.824 today after a 2.6% decline in 24 hours. This altcoin has been under bearish pressure due to the falling Bitcoin price and a pullback across the broader crypto market.

Moreover, the lack of a major exchange listing has added to the headwinds facing Pi Coin.

However, the 4-hour price chart indicates that a massive rally is looming. This is after Pi Coin confirmed a breakout from a falling broadening wedge pattern. If this breakout is strong and attracts buying pressure, it could reverse the current trend from bearish to bullish.

A decisive breakout will lead to Pi Network price rising by more than 44% from the current price. In this case, Pi Coin will rise towards $1.19.

The volume histogram bars have turned to green, which highlights a slight uptick in buying activity, which shows some traders bought the dip. However, the RSI is still below 40, which is a sign that sellers have the upper hand, leading to a bullish Pi network price prediction.

At the same time, the Average Directional Index (ADX) indicator has tipped south, another signal that the current trend is weak. This may prevent a decisive breakout from the falling wedge.

A recovery for Pi Network price to $3 ATH could be aided by news of strategic partnerships and ecosystem growth. However, if buyers continue to show hesitance, it could cause a dip towards the $1 price level.