Pi Network price could be a coiled spring ready to pounce after spending the last few months in a narrow range. This rebound could happen soon as the pace of its token unlocks is set to slow down substantially in the coming months.
Pi Network Price to Benefit From Falling Pace of Token Unlocks
One reason why the Pi Network price has crashed by over 90% from its highest level in February is its continued token unlocks, which will continue in the coming years.
The pace of token unlocks has been in an uptrend since its mainnet launch in February, and the network will unlock 190 million tokens this month.
On the positive side, the pace of unlocks will continue slowing through June next year. Data compiled by PiScan shows that the network will unlock 121 million tokens in January, a figure that will continue falling until it hits a low of 76.3 million in June this year.
Pi Network UnlocksToken unlocks are usually bearish for cryptocurrencies as they normally increase the number of tokens in circulation, which in turn leads to high inflation. Therefore, a decline in Pi Network’s pace of token unlocks will be a good thing for the price.
This decline will come at a time when Pi is having some notable tailwinds. One of these tailwinds is its recent investment in OpenMind, which accelerated its pivot to the booming artificial intelligence industry.
In a statement this week, OpenMind said that it had entered a partnership with Circle, the creator of the USDC stablecoin. The partnership will see the two companies create a foundational set of machine-to-machine payments.
Its statement noted that the two companies will bring USDC-powered micropayments to life and shape the infrastructure of autonomous AI transactions. While the statement did not mention Pi Coin, there is a possibility of a future collaboration.
OpenMind and Circle PartnershipThe other main tailwind is Pi Network’s MiCA application in Europe, a move that will make it easier for exchanges in the region to list it.
Pi Coin Price Prediction: Consolidation Could Lead to a Surge
The three-day timeframe chart shows that the Pi Network price has moved in a horizontal direction in the past few months. It has remained inside the narrow range between the support and resistance levels at $0.1613 and $0.2875.
This consolidation is likely a sign that the token is in the accumulation stage of the Wyckoff or Dow Theory. In both theories, the accumulation phase is usually followed by the markup stage, where an asset goes parabolic. A good example of this is the recent Zcash price surge, which happened after a two-year consolidation.
PI Network Price ChartThe Pi Coin price surge will be confirmed if it moves above the upper side of the channel. If it happens, the next key resistance level to watch will be the psychological level at $0.50. A move above that level will raise the possibility of it moving to $1. However, a drop below the support at $0.1612 will point to more downside.
Source: https://coingape.com/markets/pi-network-price-shows-signs-of-recovery-as-unlock-rate-cools/
