Pi Network's PI Token Soars Amid IOU Market Speculation

Pi Network's native token, PI, has experienced a surge in value, now trading near its IOU price of $47. Despite the ongoing testnet status of Pi Network, the token's IOUs are being traded on exchanges such as HTX and BitMart. The jump in price is attributed to a recovery from a previous 98% drop on CoinMarketCap, excluding exchanges with significantly fluctuating prices. High selling pressure remains, with numerous scam attempts targeting users. Despite marginal recovery, the Pi coin price is expected to remain range-bound in the absence of significant bullish cues.

Pi Network's Native Token, PI, Experiences a Surge in Price Amid Speculation

NOIDA, India (CoinChapter.com) - Pi Network, a blockchain project with a significant user base, has witnessed a surge in the price of its native token, PI. This development has surprised many followers of the project, as the mainnet, where the token is expected to hold actual value, has not yet been launched.

The PI token, which had previously plummeted to $0.5 across prominent charting platforms, has now rebounded to trade near its IOU (Initial Unreleased Option) price of $47. It is crucial to note that this surge does not signify the launch of the open mainnet, which is anticipated to occur sometime in June 2024.

The Pi Network recently announced that it had completed the KYC (Know Your Customer) verification process for 10 million of its 15 million users, a requirement for the open mainnet launch. However, the sudden increase in PI's price is attributed to a different factor.

Understanding the IOU Market

Technically speaking, there is no official PI coin. Until the mainnet is launched, the tokens mined on the Pi Network hold no inherent value. Since the project is still in its testnet phase, the PI coins traded on exchanges like HTX and BitMart are essentially IOUs. Traders are exchanging promissory notes rather than the actual tokens themselves. Consequently, the entire PI coin market is currently driven by speculation.

The IOU value of the Pi Network token recently witnessed a sharp decline of over 98% on CoinMarketCap. However, the charting website's data indicated that this price drop was confined to specific exchanges.

Market Dynamics and Speculation

CoinMarketCap has adjusted its tracking of PI coin prices by excluding certain exchanges from its overall price and volume calculations. The excluded exchanges exhibited significant deviations from the IOU price. This measure appears to have stabilized the fluctuating Pi Network token prices.

The selling pressure for PI coins remains elevated, as evidenced by the abundance of users eager to sell their holdings on social media platforms like X. Many of these requests are likely to be scams, a prevalent issue recently faced by Vietnamese Pi Network users.

The Pi Network token has amassed a large following in Vietnam. Scammers have exploited the growing enthusiasm by employing various deceptive tactics, including misleading sales pitches and fraudulent investment schemes. Users with substantial PI coin holdings may fall prey to these scams, promising to purchase their tokens.

IOU Price Movement and Technical Analysis

The PI coin, traded as IOUs on exchanges, has shown signs of recovery since April 18. The token rallied over 14% to reach a daily high near $49 on April 22. This surge is likely a response to the rectification of its price on CoinMarketCap. However, the PI coin price retreated later in the day.

From a technical analysis perspective, if the rally persists, the PI price could ascend to a resistance level near $51.6. A breakout above this resistance could potentially propel the PI coin price towards another resistance level at $61.

Alternatively, a downtrend could drag the PI coin price towards a support level of $41. A breach of this support could lead to a further decline, testing the support level at $33.6 before a recovery.

In the absence of any significant bullish cues, the PI coin price is likely to remain within a range-bound trading pattern. The RSI (Relative Strength Index) for PI remained neutral on the daily charts, with a score of 61.21.

Conclusion

The surge in the Pi Network token's price is primarily attributed to market speculation within the IOU market. While the price is currently trading near its IOU value, it is essential to emphasize that the actual value of the token will only be determined upon the launch of the mainnet. Investors and traders should exercise caution and conduct thorough research before engaging in any transactions involving PI coins.