Pi Network price has been in a downward trend in the past week as hopes of the mainnet launch happening this year faded. The Pi coin has now formed a high-risk chart pattern that could lead to more downside.
Pi Network Price Analysis: Bearish Pennant Forms
The Pi Coin IoU price could be on the cusp of a strong bearish breakdown after forming two risky chart patterns. It formed a near double-top pattern around the resistance level at $92. This pattern is made up of twin peaks and is often a popular sign of more downside.
Pi Network has now formed a bearish pennant pattern, which is characterized by a long vertical line and a triangle-like pattern. This symmetrical triangle has formed well and is slowly bearing its confluence level. A bearish breakout typically happens when the two lines of the triangle are about to converge.
Worse, Pi Network has also moved slightly below the 50-day Exponential Moving Average, while the MACD indicator has dropped below the zero line.
Therefore, a drop below the ascending trendline that connects the key down-swings since September, will point to more downside. If this happens, Pi Network price will drop to $37, its lowest level on October 15, and 30% below the current level.
Conversely, a move above the important resistance level at $57.5 will invalidate the bearish view. This is the upper side of the pennant’s triangle. A bullish case would be supported by the fact that Pi coin price remains above the ascending trendline.
Also, the last strong uptick in November happened after it spent a few weeks in a consolidation. Therefore, if this breakout happens, the coin could jump to about $73, the 61.8% retracement level.
Pi Coin Mainnet Launch
A likely reason why the Pi Network price may have a bearish breakout is that the mainnet launch may not happen this month as expected.
In a statement during the weekend, the developers postponed the grace period for the KYC verification from November 30 to December 31. With this postponement, it means that the transit from the enclosed mainnet to a full mainnet.
The mainnet launch is important because it will let pioneers convert their Pi coins them into fiat currencies. It is impossible to convert these coins into cash during the enclosed mainnet period. The general view is that the Pi Network IoU will rise ahead of the mainnet launch.
To be clear: this IoU is not affiliated with the main Pi Network team and is only listed in HTX. It is, nonetheless, used as a proxy for the Pi Network token.
The post Red Alert For Pi Network Price As A Risky Pattern Forms appeared first on CoinGape.
