Pi Network Price Prediction: Wedge Breakthrough Approaching, Expecting a 150% Rebound After the Crash?

The price of Pi Network has formed a descending wedge pattern, indicating further upward movement. The token has fallen more than 90% from its all-time high, with a market capitalization evaporating by over $18 billion, but the technical indicators show that a bullish divergence is forming. The True Strength Index (TSI) and Percentage Price Oscillator (PPO) have both shown bullish crosses, and the Pi Network price forecast suggests it may be in the Wyckoff accumulation phase.

Descending Wedge Pattern and Wyckoff Accumulation Phase

(Source: Trading View)

There are many reasons to be bearish on the price of Pi Network. It is a token with extremely poor liquidity, unlocking millions of tokens each month with no utility. Additionally, it has already fallen more than 90% from its ATH, with a market capitalization evaporating by over $18 billion, and it is highly centralized. However, amidst the many negative news, the token has slowly formed a wedge pattern, which may soon trigger a significant pump.

The descending wedge is a classic bullish pattern in technical analysis. This pattern is formed by two downward-sloping and converging trendlines, with the upper boundary representing the progressively lower high points of each rebound, and the lower boundary representing the declining low points of each pullback, although the decline is slower than that of the upper boundary. A strong rebound typically occurs when the two lines approach the point of convergence, and this situation has now emerged. In the Pi Network price prediction, the significance of this pattern lies in the fact that it often signifies a exhaustion of selling pressure and accumulation of buying interest.

Technical indicators also show that Pi coin may rebound soon. For example, the two lines of the True Strength Index (TSI) have formed a bullish crossover. TSI is a momentum oscillating indicator that typically signals the buying power beginning to surpass the selling power when its fast line crosses above the slow line. The Percentage Price Oscillator (PPO) is similar, which is a momentum indicator akin to MACD. This indicates that the price of Pi coin has formed a bullish divergence pattern, where the price hits a new low but the indicator does not hit a new low, suggesting that the downward momentum is waning.

People might also say that the price of Pi Network is currently in the accumulation phase of the Wyckoff Theory. This is similar to the stage that popular tokens like OKB and Zcash were in before their recent parabolic trends. The accumulation phase is characterized by consolidation and low trading volume, which is exactly the state of Pi Network at the moment. In the Wyckoff Theory, the accumulation phase is the period when smart money quietly builds positions, and once the accumulation is complete, a breakout is often seen.

Three Confirmation Signals of a Falling Wedge Breakout:

Price breaks above the upper boundary trend line: The daily closing price needs to clearly stay above the upper boundary.

Significant Increase in Trading Volume: The trading volume at the time of the breakout should be at least 1.5 to 2 times the recent average.

RSI Synchronously Breaks Through the 50 Neutral Line: Confirms Momentum Shift from Negative to Positive

If this situation occurs, the Pi Network price prediction indicates that the Token may soar to a high of $0.50. This trend would represent a 150% increase from the current level. On the other hand, if it falls below the critical support level of $0.1400, the bullish price prediction for Pi coin in 2025 will become invalid. $0.1400 is an important support level at the lower boundary of the descending wedge, and breaking below it will disrupt the entire bullish pattern.

100 million USD ecological fund and DEX testnet launch

One of the main reasons for the big dump in Pi's value is its lack of practicality. This is different from top crypto projects like Ethereum and Solana, which handle millions of transactions daily. The lack of effective practical features has disappointed many users who originally expected it to disrupt the digital and physical retail and payment industries. This situation may change after the team announced several major statements.

One of them is that in May, the developers launched a $100 million Pi ecosystem fund to invest in projects within the ecosystem. Although no companies have received financing yet, this is likely to happen soon. The launch of this fund shows that the Pi Network team recognizes that the lack of practicality is the fundamental reason for the weak prices and has begun to take action. The $100 million scale is considered medium-sized among cryptocurrency ecosystem funds, and if allocated effectively, it is sufficient to incubate dozens of high-quality projects.

Recently, developers released the testnet for the decentralized exchange (DEX) and automated market maker tools. This release will enable developers to create DEX platforms like Uniswap and PancakeSwap. This is one of the most important fundamental catalysts in Pi Network price predictions, as DEX is the infrastructure of the DeFi ecosystem. Once the DEX on Pi Network is launched, users will be able to trade various tokens, provide liquidity, and earn fee revenue.

The launch of the DEX testnet marks a key step for Pi Network from concept to practical application. The testnet phase will allow developers to test the security and performance of smart contracts, identifying and fixing potential vulnerabilities. If the testnet runs stably, the launch of the mainnet DEX will bring real trading volume and use cases to Pi Network, fundamentally changing the market's valuation logic for Pi.

App Studio AI Upgrade and Developer Ecosystem Expansion

Pi Network has also launched an upgrade of its App Studio application, introducing AI features to facilitate developers in building applications. This upgrade comes at a particularly timely moment in the broader trend of the integration of AI and Web3. The AI features can help developers build and deploy dApps more quickly, lowering the development barrier.

The AI upgrade of App Studio may include features such as smart contract template generation, automated code testing, and security vulnerability detection. These tools will allow developers, even those without extensive blockchain development experience, to build applications on the Pi Network. This strategy of lowering the threshold is crucial for ecological expansion, as the scarcity of blockchain developers is a common challenge faced by many public chains.

Developers have begun to focus on creating a robust ecosystem. This strategic shift has long-term implications in the price prediction of Pi Network. The value of a public blockchain ultimately depends on the prosperity of its ecosystem. Ethereum is able to maintain its position as the largest smart contract platform precisely because it has thousands of active dApps and millions of daily active users. If Pi Network can replicate this ecosystem prosperity, its Token value will gain solid support.

Three Pillars of Pi Network Ecosystem Development:

100 million USD ecological fund: Provides funding support for quality projects to accelerate dApp development and user acquisition.

DEX Infrastructure: Provides token trading and liquidity management tools, forming a DeFi ecosystem closed loop.

AI-driven development tools: Lowering development barriers to attract more developers to join ecosystem building.

If these upgrades can be successfully implemented, they will provide strong fundamental support for Pi Network price predictions. However, execution risks still exist. The ecosystem fund requires effective project selection and management mechanisms, DEX needs to undergo security audits and attract enough liquidity providers, and AI development tools need to prove their practical utility.

Liquidity Crisis and Centralization Controversy

The biggest challenge facing the Pi Network is still its extremely poor liquidity and high centralization. Millions of Tokens are unlocked every month, but the lack of sufficient buying support leads to continued price pressure. High centralization means that most of the Tokens are still held by the team and early participants, and this chip structure makes the price easy to manipulate, which also limits the willingness of institutional investors to participate.

Liquidity issues in Pi Network price predictions are a double-edged sword. On one hand, low liquidity makes prices susceptible to significant fluctuations, with small buy orders capable of driving prices up rapidly. On the other hand, low liquidity also means that when selling pressure occurs, prices can drop quickly, making it difficult to exit at desired prices. This characteristic makes Pi Network more suitable for high-risk tolerant speculators rather than long-term investors seeking stable returns.

The controversy over centralization stems from the distribution model of Pi Network. Unlike the fair distribution of Bitcoin and Ethereum, most of Pi's tokens are distributed to millions of users through mobile mining, but these tokens are locked for a long time and the unlocking rules are controlled unilaterally by the team. While this model has expanded the user base, it has also raised questions about the excessive control of the team. If the team can gradually decentralize the governance structure and transfer the unlocking of tokens and ecological decision-making power to the community, these controversies may be alleviated.

Despite these issues, Pi Network still has a massive user base. It is said that there are over 50 million registered users globally, which is a scale of users that any emerging public chain finds hard to reach. If the ecosystem upgrade successfully activates these users, transforming them from passive “miners” to active “users”, the long-term outlook for Pi Network's price predictions will significantly improve. The key lies in execution and timing, as the market is waiting for the Pi team to convert promises into real applications.