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Pi Network big pump 10%, Dead Cat Bounce or reversal starting point?
After hitting new lows for several consecutive days, Pi Network's native token PI has experienced a rare double-digit pump. This surge has given some investors hope for a rebound, but others are concerned that this might just be a typical "Dead Cat Bounce." The upcoming trend will determine whether PI has truly stepped out of its worst period.
PI price rebounds from historical low
According to CoinGecko data, PI hit a historic low of $0.335 on August 6, plummeting about 90% from its peak at the end of February. However, in the past three days, the PI price has rebounded to $0.4, with a gain of 20%.
This rebound occurs as the overall cryptocurrency market warms up, especially with Ethereum ETH breaking through 4,000 dollars, driving most altcoins to rise by 5-8%, while PI attracts market attention with a higher pump.
Dead Cat Bounce or Trend Reversal?
Although the PI community feels excited about this pump, historical experience reminds investors to remain cautious. PI has also experienced similar short-term surges during past downturn cycles, followed by a rapid rebound.
Technical analysts indicate that if PI cannot stabilize above $0.4, this rebound may just be a brief respite in a bear market.
Selling pressure may ease
(Source: PiScan)
From the supply side, the selling pressure may ease in the short term. PiScan data shows that in the coming month, only one day will see a Token unlock amount close to 10 million, while the average daily unlock amount will be about 5.6 million, far lower than the 7 to 8 million in June and July.
In theory, a lower unlock volume helps to alleviate market sell-off pressure and provides some support for price stabilization.
Key Focus for the Market Ahead
Investors should closely monitor the following key factors:
Can the price continue to hold above 0.4 USD?
Overall market sentiment and capital flow
Token Unlocking Rhythm and Trading Volume Changes
If market sentiment continues to warm up and selling pressure eases, PI is expected to further challenge the range of 0.45 to 0.5 dollars.
Conclusion
The recent 10% surge of the Pi Network undoubtedly brings a glimmer of hope to long-suffering investors. However, whether this marks the beginning of a trend reversal or a temporary Rebound in a bear market still requires time to validate. For investors, staying cautious and observing key support levels may be the wisest strategy at this moment.