The price of the PI network collapsed after having culminated at $ 3 in February shortly after its main launch. The Pi Coin token crashed at current $ 0.65, down 78% compared to its top of all time. This crash has erased billions of value, because market capitalization has increased from more than $ 13 billion to less than $ 4 billion. This article explains why it is risky of short PI piece.
The price of the PI network could increase in the event of an exchange rating
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The short circuit is a process where investors and merchants are looking to benefit from the drop in an asset. The practical approach is the place where you take a cryptocurrency, sells it, then buys it later at a lower price and balances the difference.
The short circuit is more risky than the purchase of an asset because its price can increase indefinitely in a process known as short pressure. For example, if you take a PI network at the current price of $ 0.67 and drops to $ 10, you will suffer a loss of $ 9.33 per token.
The main reason to avoid the PI network is that it can undergo short pressure if it receives an exchange list. This is notable because Pi, despite its large size, is only listed in a handful of exchanges like OKX and Mexc.
Therefore, there is room for the main exchanges of exchanges, in particular by companies like Binance, HTX, Coinbase and Upbit. Such a decision will probably lead to a short significant pressure, as we have seen in the past few months.
For example, the Orca price jumped more than 200% per day after being listed by Upbit. As we wrote earlier, Deepbook Price also jumped more than 150% after being listed by Upbit and Binance Futures.
Pi Network is a more popular room than Orca and Deepbook, which means that a 500% overvoltage cannot be excluded.
Pi coin has a story of short compressions
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While Pi Network launched his Mainnet in February, investors were able to exchange his IOU. These TIs are tokens created in 2021 by certain exchanges to give investors an exposure to the token. They were not affiliated to the basic team and had a low volume.
History shows that these tokens regularly had short compressions. For example, that listed by HTX increased from less than $ 30 in October to $ 99 in November, an increase of 172%. He then fell below $ 50, then climbed to almost $ 90.
With the price of the PI network so low, it only needs a small spark to catapult it strongly from the current level.
Crypto-taureau to come
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In addition, the price of the PI network can benefit if there is a cryptographic bull race. There are early signs that this race will soon occur. Bitcoin Price increased to $ 94,000 for the first time in more than a month, while the market capitalization of all cryptocurrencies is approaching 3 dollars.
Analysts hope that a Bull Run begins, with standard approved experts predicting a summit of all time for Bitcoin.
A probable catalyst for the crypto market rally is that Trump said that he did not intend to dismiss Jerome Powell. Trump also suggested that he was ready to speak with China on plans to resolve the commercial skirmish. Such a decision would lead to more entries from investors.
Network pi can tackle its Tokenomics
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The other main reason why the PI network can increase is that developers can attack its tokenomic. There are signs that the developers began to buy his tokens, as Dr. Altcoin noted.
In addition, it is likely that the PI network is burning most of the non -claimed tokens once the KYC process ends. Such a decision would help to approach the current risk of dilution with which the network is confronted, because billions of tokens are about to put online.
Pi Coin Price has double
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Finally, there are signs that the price of the PI room has a background. He formed a double -bottomed pattern at $ 0.5860, with a neckline at $ 0.7767, his highest point on April 17.
This model is one of the most popular bullish inversions signs. This means that the token could soon increase, with the initial point to look at $ 0.7,767. A movement above this level will indicate more gains, potentially at the top of all time of $ 3.
