Pi coin’s bullish setup faces a reality check amidst delays and migration issues. Read CoinChapter.com on Google News
NOIDA (CoinChapter.com)— The Pi Coin project continues to attract attention with its outrageous shilling campaigns, ambitious (often unreachable) goals, and hopium-addicted users.
Recently, a bullish technical setup has emerged, promising potential price surges. However, traders would be wise to temper their optimism by remembering ongoing network challenges, including delays and user migration issues.
The project recently delayed (again) the launch of its open mainnet, leaving users with the promise of a grace period for meeting mainnet launch requirements, though it seems a likely stalling tactic.
Bullish Technical Setup: Ascending Triangle Pattern
The Pi Coin IOU price recently tested the support trendline of an ‘ascending triangle,’ a bullish technical setup that historically indicates potential upward momentum.
The pattern forms when a horizontal trendline connects swing highs, and an ascending trendline connects swing lows, signaling that buyers are gradually gaining strength.
PI coin price formed a bullish pattern with a 117% upside target. Source: Tradingview
Volume is crucial in confirming the strength of a breakout, and ideally, as the trendlines converge, increased buying activity would push the price above the horizontal resistance level.
According to technical analysis principles, if the bullish pattern materializes, the price target for Pi Coin would be equal to the height of the triangle at its widest point. This suggests a theoretical price target near $91.15, representing a 117% increase from current levels.
However, while the technical setup appears promising, it’s essential to consider the broader context and challenges facing the Pi Network, which may impact the realization of this bullish scenario. Given the delays and ongoing issues, skepticism remains about whether this bullish potential can be fully realized.
Pi Network Grace Period Dynamics and Economic Implications
The Pi Network recently announced a six-month grace period starting July 1, aimed at preparing for the Open Network. During this period, pioneers must complete their KYC and mainnet migration.
Though the extension supposedly provides flexibility for those facing system blocks, but it raises suspicions about the network’s intent to bolster its locked supply by having more users lock up their tokens.
The grace period’s success depends on meeting KYC and migration goals. Failure to do so could lead to further delays and erode user trust. There is a likelihood of extending the grace period again, citing technical or user-related issues, if targets aren’t met, further postponing the mainnet launch.
Tweet about Pi Network’s Grace Period announcement.
Alternatively, a partial launch could occur, allowing only users who have completed their migration to participate, potentially causing fragmentation and dissatisfaction within the community.
To address liquidity concerns, the network might offer more incentives for users to lock tokens. While this could temporarily stabilize the supply, it is unlikely to be sustainable in the long term. The grace period allows users to accumulate Pi Coins without immediate pressure to spend or trade, fostering user engagement.
However, it may also create a false sense of security regarding the coin’s actual market value.
While appearing user-friendly, the mechanism could ultimately expose the Pi Network to volatility and instability. When users attempt real-world transactions, the economic model of Pi Coin would likely face a harsh reality check.
If the actual utility and market demand do not meet expectations, sharp market corrections could undermine Pi Coin’s perceived value. The network’s high locked token count and ongoing migration issues indicate significant hurdles before achieving its ambitious and often lofty goals.
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