Pi Network (PI) Price Prediction: Will the Token Bounce Back From Its 30% Plunge?

Pi price surged by more than 3 times in the past few days, and after reaching the local highs, the token is facing some upward pressure

The crypto markets are consolidating! After a gigantic bull run, the Pi price has entered a corrective phase by plunging over 30%. The rise in the volatility and volume indicates a significant rise in the trading activity, reflecting an increase in their attention.

Earlier this week, the Pi Network announced a $100M fund to help projects in the Pi ecosystem grow. This news does not appear to have sat well with many in the Pioneer community, who felt let down by the lack of real, working decentralized apps to back the project. This could be the reason the Pi price crashed after peaking at $1.50 earlier this week, wiping out nearly all of its recent gains and leaving many wondering what’s going on behind the scenes.

The recent pump was driven by investors reacting optimistically to the ecosystem update. The price is currently compressing against the key resistance, and if it flips from the range, a fresh upswing could begin.

The rejection followed after a couple of failed attempts to surpass the pivotal resistance between $1.21 and $1.28. The MACD also shows a drop in the buying volume with a huge possibility of a bearish crossover. However, the levels remain within the positive range, keeping up the hopes of a strong rebound. Considering the Ichimoku cloud, it appears that the token is expected to display massive price action as the conversion & base lines have converged with each other while the Ichimoku cloud remains bullish. Once the cloud undergoes a bullish crossover, the bullish divergence could be validated.

Currently, the Pi price has entered the testing zone, and hence it may move between $0.06 and $1 for the next couple of days. The recent announcement of $100 million in funds suggests the upcoming announcements will be about innovative projects joining the network. This could further bolster bullish sentiments for the various projects and development of the Pi ecosystem.