Pi Network Price Analysis as the Top Whale Goes on a Buying Spree

Key Insights

• Pi Network price has moved sideways in the past few weeks.
• The coin has formed a head-and-shoulders pattern.
• The biggest whale has continued to buy the token.

Pi Network price has gone sideways this month despite having some important milestones. It was trading at $0.1688 on Wednesday, down by over 40% from its highest point in March this year. This article explores whether the ongoing whale buying spree will lead to a surge.

Pi Network Price in Focus as Top Whale Boosts Purchases

CoinMarketCap data shows Pi Network’s trading volume on centralized exchanges has dropped sharply. The decline marks a steep fall from its highest point in March this year.

Despite all this, the biggest whale has continued to do the dollar-cost averaging strategy this month. DCA is a process where an investor buys an asset in small chunks over a long period.

The whale bought 567k coins worth about $96k on Tuesday this week. A day earlier, he bought over 2.7 million tokens worth $470k.

In total, he has now bought over 8 million tokens worth over $1.36 million. He now owns over 411 million tokens worth over $70 million, making him the biggest holder.

It is unclear who this whale is. He may be an ordinary retail investor who believes that the coin is a bargain and that it will rebound in the future. Another option is where this is an insider with some information that the rest of the market does not have.

Pi Network is Making Progress Despite the Crypto Winter

This has become a highly active year for Pi Network despite the ongoing crypto winter that has affected Bitcoin and most altcoins.

The team has made some major announcements in the past few months. That includes the ongoing protocol upgrade that will see it move from v19 of Stellar consensus to v23.

This is the biggest upgrade in Pi Network’s history because of the features it has introduced. The most important one is smart contracts. This will make it evolve into a top competitor to Solana and Base.

Smart contracts are self-executing programs that automatically run when certain conditions are met, removing the need for intermediaries.

When fully executed, it will now be possible for developers to build products in areas like DeFi, RWA tokenization, and gaming.

The developers have already released a subscription smart contract in the testnet, making it possible for existing developers to integrate smart contracts to their applications.

Therefore, these smart contracts will lead to more utility for the Pi token, which may boost its value. Still, the main challenge is that the smart contracts industry has become highly competitive, with projects like Ethereum, Solana, and BSC Chain having the biggest market share.

Another major challenge is that it may struggle to attract top developers like Aave, Uniswap, Raydium, and PancakeSwap.

In most cases, these dApps are the ones that drive more activity to layer-1 and layer-2 chains. Chains that lack these tools like IOTA, Zilliqa, and Cardano often lack a vibrant ecosystem.

Additionally, Pi Network is still to attract several building blocks of good layer-1 chains. For example, it still does not have a deal with oracle providers like Chainlink and Pyth Network. Also, it has not yet attracted any stablecoin to its network.

Pi Coin Price Technical Analysis

The daily timeframe chart shows that the Pi Network price has moved sideways in the past few weeks. This consolidation is happening above the crucial support level at $0.1625. There, it failed to move below since March.

The coin has remained below all moving averages, a sign that bears remain in the drivers seat. Also, it has formed a head-and-shoulders pattern, a common bearish reversal sign in technical analysis.

Therefore, the token will likely continue falling in the near term, potentially to the key psychological level at $0.1500. On the flip side, a move above the key resistance level at $0.1887 will point to more gains.

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