Pi Network (PI) important signal: Whale transfers PI from exchange, bullish reversal aiming for $1 target?

Due to the sluggish demand for alts, the price of Pi Network (PI) has continued to fluctuate this week. Over the past five days, the price of Pi coin has dropped by 13%, lagging behind the over 1% increase in Bitcoin during the same period. However, the ongoing massive outflow of funds from exchanges and two unique chart patterns suggest that this may trigger a strong Rebound for Pi coin.

Whales transfer PI coin from the exchange, planning to hold long-term

A potential catalyst for Pi Network is that whales are transferring their tokens from exchanges to self-custodial accounts. Data from PiScan shows that the total inflow in the past 24 hours exceeded 10.3 million coins. On the other hand, the total outflow rose to 12.04 million coins, resulting in a net outflow of -1.7 million coins.

Transferring out of the exchange is a good thing, as it shows that these whales intend to hold them for the long term.

A potential reason for the whales' increased holdings is that Pi2day recently launched the Pi AI Studio. The studio allows users to build artificial intelligence applications in minutes. The Pi core team also launched the Staking service, although the initial intention was to create more practical features, the launch of the staking function raised market doubts as users found that the staking mechanism offered no rewards.

Pi Price Analysis

According to Coingape, the 8-hour chart shows that the price of PI coin has been under pressure as bulls defend the key support level of $0.50. Although the chart appears bearish, there are signs that this performance may be the calm before the storm.

The first bullish scenario for the price of PI coin is that it has formed a double bottom pattern. This pattern includes two lower fluctuations, indicating that bears have no intention of shorting below this level. The PI coin also has a neckline; for example, the neckline for PI coin is at $1.6728, which is the highest level in May.

The double bottom pattern is located at 0.4016 USD, and it failed to fall below this level in both April and June. Therefore, if this pattern is valid, the token may achieve a strong breakout.

Another catalyst is that the price of PI coin has also formed a descending wedge pattern, as shown in the orange in the figure below. The upper line connects the highest levels on May 21, June 11, and June 16. On the other hand, the lower line connects the lowest fluctuations since May 18.

The price of PI coin has broken through the upper trendline of the wedge and has successfully retested that point. In most cases, when the price retests the breakout point, a bullish continuation pattern is confirmed.

Therefore, the price of PI coin may rise and potentially retest the psychological level of 1 dollar. Such a trend indicates that the price will be 100% higher than the current level.

On the contrary, breaking below the important support level of 0.4016 USD will invalidate the bullish PI forecast and indicate greater downside potential.

(Source: Trading View)