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▲ Pi Coin (PI)/ChatGPT generated image ©
With the mainnet migration temporarily halted, concerns about a supply 'bomb' have subsided, and Pi Network (PI) is sending clear bullish signals, raising investor expectations.
According to investment media FXStreet on May 5 (local time), Pi Network maintained a stable trend above the $0.1800 mark after rising 3% the previous day. The main factors for this price defense are believed to be the alleviation of downward pressure due to the five-day delay in the mainnet transfer of new tokens, combined with a recovery in overall investor sentiment for virtual assets.
Previously, Pi Network had been suffering from continuous selling pressure as tokens that completed KYC verification were transferred to the mainnet and then flowed into centralized exchanges. However, according to PiScan data, after 19.06 million Pi Network tokens were transferred last Thursday, the migration stagnated, leading to a sharp decrease in new supply from testnet holders looking to realize profits, firmly supporting the price floor.
The fact that the market leader Bitcoin (BTC) is firmly holding the $80,000 mark and warming up the overall market is also positive. CoinMarketCap's Fear & Greed Index rose from 41 to 49 last week, indicating a resurgence in risk appetite. Typically, such an improvement in investor sentiment acts as a catalyst to further boost the upward potential of high-risk tokens.
Technical indicators also point to a cautious bullish market. On the 4-hour chart, Pi Network is trading around $0.1812, above both the 50-period Exponential Moving Average (EMA) at $0.1789 and the 200-period EMA at $0.1772. The Relative Strength Index (RSI) is at 55, indicating an upward trend above the centerline, and the Moving Average Convergence Divergence (MACD) has also broken above its signal line, suggesting positive buying momentum.
A key factor for future movement is whether it breaks through the resistance zone formed between $0.1821 and $0.1827. If it firmly surpasses this supply zone, there is a possibility of it settling at the $0.2000 mark, past the closing price of $0.1970 on April 29. Conversely, if selling pressure intensifies and it undergoes a correction, experts predict it will seek a rebound at the first support level of $0.1790, followed by the second support level of $0.1772.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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